Why is the dollar jumping because of France?

[TrendPulse]

Hey everyone, I’ve been watching the charts this morning and noticed the dollar is looking really strong while the euro is taking a serious hit. I keep seeing headlines about violent protests in France dragging everything down, but I’m a bit confused about the connection. Does political unrest in one country usually cause this much volatility across the board, or is this just a temporary overreaction?

I’m still pretty new to the forex side of things and I’m trying to figure out if I should stay on the sidelines or if there’s a way to play this move. Is it common for the euro to get hammered this hard whenever there's civil instability, or am I overthinking the fundamentals? If any of you experienced traders have a second, I’d love to know how you guys usually adjust your positions when news like this hits. Should I be looking to scalp the EUR/USD or is it better to just hold off until things calm down?

 

[ArthurByte]

EUR/USD is getting absolutely nuked because of the French political circus, and since EUR makes up like 57% of the DXY basket, the dollar has no choice but to moon when the Euro drops.

Honestly who cares about the headlines though? The charts telegraphed this whole move. DXY swept sell-side liquidity, tapped a clean H4 bullish order block, and left a massive FVG that buyers didn't even let fill before ripping higher. EUR swept buy-side and completely broke structure to the downside.

Classic HTF expansion. Do NOT try to short this dollar train, I'm staying aggressively long until we take out the daily buy-side liquidity above.