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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (347)

5/11/2017 1:10:37 AM

From: John Pitera

Read Replies (1) | Respond to of 13784

Hi El, as we can see there really has been something to where the EUR/USD is trading and whether or not it is corellated with a "Risk On" trading environment that is bullish for US stocks.

As you pointed out the EUR was able to climb over 1.10 for a brief period on Sunday night and our US stock futures were pretty darn strong.... and then both of them ran out of gas and we have been in grind mode, for the first 3 days of this trading week.

here is a 6 month chart of the EUR/USD and you can see how there is a 50% retracement on the US trading that is at the 1.10 level and the market seems to be respecting that.

Here is a 15 month chart of the EUR/USD and we can see how stockcharts which keeps track of US trading hours shows a price high of 1.16 on May 3rd of 2016..... which is how we get to a 50% retrace at 1.10.

Now what is interesting is that in the Overnight session ( I believe just before Europe really opened the EUR
had a very quick short lived move up to 1.1850............... it was there on a news 'pop" and some of the market participants are treating it differently.

This shows the How we were briefly up over 1.18... although I had to combine the data to confirm.

The thing is that we have been repelled by that very magnetic cluster of 1.0953 and 1.0944 for the moment......

The weekly 6 Year weekly EUR/USD on the bullish side did get above it's upper bollinger band and closed above it last week which is impressive as it's the first time that it's occurred since February 2013....... However, the price action on the daily and weekly chart looks like a corrective wave action.

So the News and the Inspiration for US stocks and a number of markets will be coming from a different genesis (or price driver)... The NZ dollar fell a bit on the news of an earthquake in Wellington.

Now that is not going to do much ... however, the Pacific Rim ring of fire could be giving us a signal of a market moving quake that might pop up in a more pivotal location..... California...... Tokyo ???? the markets will sort themselves out.