Euro Weekly Chart Update




I recently had this bearish wave count as a potential wave 3 extension.  The Euro’s  present 2016 choppy decline signals a potential 5th wave. The 5th wave is one of the most popular places when diagonals can happen, so this is always a big clue where we may be at.

Either way this bearish rally from the wave (3) bottom to the wave (4) top, was about 12-13 months. The Euro downside should have a lot more time to run as Europe has killed most of its currencies, and the running to safety could send money into the US dollar. 

The Euro is on a Cycle degree decline which is the opposite of the US dollar. When this bottoms, then we could see a Supercycle degree wave (III) bottom, followed by a huge bull market, If it survives.  We may see Euros being pushed around in wheelbarrows, but I could be wrong about that, as they may need dump trucks to do the same thing. The EU has a banking crisis and it would not take very much to set off a mini panic out of the Euro.

Commercials are already net long, so this bodes well for a Primary degree rally still to come, but first a new low has to confirm this sideways pattern was a fake attempt at a bullish run. Sideways action is never a good sign for a great bullish run even though some more upside next week can happen.