EUR/USD

30 min

4 Hours

Daily

My Bias: short in wave (3) red.
Wave Structure: downward impulse wave
Long term wave count: lower in wave (3) red
Important risk events: EUR: Flash Manufacturing PMI, Flash Services PMI.

Good evening fellow freedom lovers!

Sit up. Take a look around. And remember this time in history. We are living in a ‘GOOD TIME’ market, a market where premises are not questioned, hypotheses are not argued, hard facts and home truths are no longer heeded. And a time where the western world has its head shoved so far up its own rear end for so long, that we cannot even recognize reality and the way of things! More on this later!!

EURUSD is now stretched to breaking point. I have run out of labels to account for this rally! If you look at the top right of the chart, I have shown the price now closing out at seven degrees of trend! It is not often that we will witness this type of turning point.

The daily, 4hr and the 30 minute charts all show a bearish diverging momentum situation. EURUSD is at a turning point to remember right now. The market is displaying a worrying height of bullishness towards the EURO. If we look at the COT data, Non commercial traders are now the most bullish on the EURO since may 2011. The price stood at 1.4670, and then began a long collapse. The same setup is on the table right now.

So, the market is about to teach us another lesson, I don’t see this price rising much more from here.

For next week, I fully expect to see the diverging momentum situation start to bear down on the price. The first sign to look for is the price to come back down below that upper trend line again.

DOW JONES INDUSTRIALS

30 min

4 Hours

Daily

My Bias: market topping process ongoing
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topping in wave (5)
Important risk events: USD: Existing Home Sales.