ECB, BoJ & Fed Tighten By Failing to Loosen Policy

We’ve all heard comments like, “Orange is the new black.” Well, in today’s upside-down world of monetary policy all three major central banks decided to not loosen policy further. Most market participants were disappointed, although it did spark some “risk-on” behavior. But, underneath the bullish action, some subtle deterioration in the “Central Banker Omnipotence” theme ECB, BoJ & Fed Tighten By Failing to Loosen Policy

Dollar Strength Doesn’t Mean Bullish Risk

EURUSD The bullish case for the euro has taken a turn. We’ve long been expecting this corrective rally to fail, and it seems the time may be upon us. After wave (E)’s false trendline break, a choppy decline ensued. But, the rally up from the 1.1123 low is a clear three wave move. As such, Dollar Strength Doesn’t Mean Bullish Risk

Elliott Waves Suggest Japanese Trouble

EURUSD The euro has been consolidating for over a year now, but it’s gained almost no ground. Without something impulsive to the upside, we can still assume parity is coming eventually. The action up from the wave (D) low is choppy and overlapped, and prices found resistance at the broken up trendline. It’ll take a Elliott Waves Suggest Japanese Trouble

Euro Stronger, GBP & Down Under Not So

EURUSD The break of the 8/5 high left a clear three wave decline from the 8/2 high, and we think higher is still to come. In fact, we’ve altered our larger count, now suggesting that prices are in wave (E) of ((X)) up from the low. That means the near term down trendline may break, Euro Stronger, GBP & Down Under Not So

QE is Ambulance That Runs Over Patient

EURUSD Our working assumption is that the entire consolidation from the 2015 low is corrective to the upside. Additionally, we potentially have a 1, 2; (i), (ii) count from the May high. Certainly, if that count is correct the downside is substantial. When you add the near perfect 61.8% retracement of the wave 1 decline, QE is Ambulance That Runs Over Patient