The Euro counter rally did not last very long at all. We will see if this impulse decline has more power to it than most analysts are expecting. The 6 currencies that are inside the US dollar basket act inversley to the US dollar with this Euro being one of them. It also all realates back to gold as gold and the Euro have traveled together many times in the past. The bullish phase in 2017 was a “C” wave bull market with 5 waves in Minute degree. At 1.16 the Euro can put up some resistance to the decline but this should only be a temporary resting spot as everyone screams, “Support”.
Price support means little, but wave pattern support is everything, from my Cycle degree perspective. I may have to adjust the wave count decline, as I’m starting this run as a wave 3 extension. We have an open gap below and this should get hit in this bearish decline. Until the Euro decline has completely played out, gold will keep heading south. Gold has crashed $70 already and it’s not finished. I’m sure the COT reports still show the commercials in a Euro short position, and until that starts to shift dramatically the Euro will keep declining. Most investors have no clue what the difference is between a real bull market and a bear market rally. “Every” bear market rally retraces itself by 100%. It’s the big bear market rallies in Primary and Intermedeate degree that fool us the most.
The Euro started it’s bear market in 2008 right along with oil, with both ending on Cycle degree wave 3 peaks. This makes it close to a 10 year bear market and we’re still counting, as “every” rally in the Euro has been completley retraced.