Euro, Cycle Degree Bear Market, Weekly Chart Review

 

e6y00-oct-12-2016

 

The Euro has gone sideways for well under two years already, but these are not the signs that the Euro is going to go on some sustained bull market, and saving the EU zone from currency destruction. Everything points to the fact that the Euro will eventually head back down much further than previously thought. The USD has cranked up, as the Euro has headed down in the last few weeks.  Sure the Euro can keep going down, but then it’s going down as a diagonal and that would mean we are in a 5th wave, and not some other wave structure.

A short counter rally can still happen as we have two major spikes that could get matched with a third spike.  Another spike in the Euro would also help gold to soar, as for many years gold and the Euro were inseparable.  We will see if there still is a bit of a connection there, as I think there is. Markets have to eventually confirm this, otherwise we have to throw the Euro away as a useful inverse indicator. That will be hard to do, as the Euro is in the USD basket of currencies. 

I will post the Euro when I see a potential turning, but not on the intraday scale, but either daily or weekly charts.  

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