EUR/USD short: Hardball vs. Wrecking BallU.S. Dollar Currency IndexTVC:DXYjvrfxalertsHello traders. It is a new week and a new wrinkle in the markets. While the SCOTUS decision on tariffs was welcome, the bigger picture has not really changed much. The USA has signed agreements with 20 countries but Moby Dick, China, is far from bending a knee. It still is a stalemate with both countries needing each other. Manufactured goods vs. rare earth minerals. President Trump's visit to China has taken on new meaning because it will be interesting to see who budges first. Not that it is necessarily a zero sum game. There is enough for both world powers to agree on. However, despite President Trump announcing 15% tariffs on all countries, it will only be valid for 150 days. My caption probably sums it up best. How will countries with existing agreements react moving forward. Will they honor the signed agreements? And why should they since President Trump has threatened even Canada which is a member of USCMA with more tariffs. I believe that the reaction to the SCOTUS ruling was a knee jerk reaction. If anything, the US 10Y yield will probably keep rising if bond vigilantes start demanding a higher return on investment. In addition, USA inflation will likely stay elevated because of the continuing tariffs. Justice Kavanaugh got one thing right. It is a mess what with potential refunds(Costco is already first in line with a lawsuit to get an undisclosed amount refunded by the USA Treasury) and even more uncertainty moving forward. This will likely take years to play out in the lower court system or maybe the International Trade Court will have the first say again. Either way, the money printing machine is going to work overtime because that Big Beautiful Bill has dug a big old hole for us as Americans. This is in my humble opinion an extremely complicated legal and financial quagmire. Keep an eye on the VIX. Gold is rising but I leave the analysis to the pro @Lingrid I have initiated a short EUR/USD position at 1.1830 with a tight stop above 1.1849. It also depends on a close above the broken downtrend line. Lastly, Japan is closed today but the rest of the Asian players are back on line today. Best of luck and stay vigilant.