Two Beautiful Reversals

EURUSD We weren’t willing to commit to the idea that EURUSD had topped last week, but we are now. It appears there’s been a perfect reversal from the resistance are we identified long ago (red horizontal line). Unless prices push past last week’s high, we’re aggressively bearish. Notice that into last week’s top, we did Two Beautiful Reversals

How Soon Till Non-USD Problems Surface?

EURUSD Prices extended higher, but contrary to many people’s view, the euro isn’t out of the woods. In fact, we see prices vulnerable to a reversal. Given the ECB’s absurd corporate debt QE program, and its floundering economies, we think the euro will soon top. Despite our view that the Fed isn’t going to be How Soon Till Non-USD Problems Surface?

Central Bankers Attempt to Devalue Each Other

USDJPY The yen strengthened, as expected, after the triangle pattern was complete. While the bounce in wave (e) was towards the upper extreme, the bounce was a gift for the bears. Such a move is why the triangle is The Wolf’s favorite pattern. It has a defined, small risk level, the wave (c) high, and Central Bankers Attempt to Devalue Each Other

Triangles Are Coiled Tightly

EURUSD We know that the rally from last March’s low was in three waves, as was the decline into the December low. Given that, we’ve been looking at either a flat or a triangle. While the flat interpretation isn’t impossible, it is unlikely while prices remain below the wave (C) high. We’re looking for one Triangles Are Coiled Tightly

European Chaos or No News is Good News?

EURUSD Five waves up are complete for wave A, after a three wave decline for (D). We’ll look for an early week corrective decline to be followed by strength up towards the key 1.1080 pivot. After that it’s either chaos in Europe, or a resumption of policy divergence in the US that leads EURUSD to, European Chaos or No News is Good News?