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Euro

10 Jun 2020 ‚óŹ 07:45 AM

A lot of people have been waiting for my long term picture on the euro and after the recent rally it's probably about time to post this chart. The euro into a prolonged correction between 2008 to 2017. After that we witnessed the 1st impulsive rally marked as wave 1. The wave 2 pullback was steep up to 88.6% retracement and also to the trendline from the 2001 bottom to the 2017 bottom. This trendline held its own on the monthly chart below on a closing basis and is now signally a 3rd wave up for the euro. Prices may initially move towards the top end of the channel near 1.30, 5 up 3rd wave can extend as we saw even in 2003. In the big picture this is part of an even larger 3rd wave that will subdivided into 5 waves and may eventually end up at the top end of its long term channel near 1.95. Such a bullish stance on the euro may appear to sound impossible to those who have been sold the "End of the Euro" narrative which in a world of floating-rate currencies is meaningless. The euro dollars across rate between dollars and euros and simply reflects the liquidity movement between the two over time.  the momentum on daily weekly and monthly time frame is in buy mode and the quarterly will also signal the same if we close above 1.1314

euro 100620

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