I got the EURO on the wrong side around the last wave down as this is a very unusual pattern with such a triangle with such magnitude at this stage. Jim O’Neill got it wrong as well – never feel comfy to be with Goldman opinions on the same end – they love to play the double sided sword game. They put efficiency before prudence.
Any way a game changer is at hand as the 50 week MA is moving closer to the 200 week MA and this golden cross ( not the bullshit the new experts on Bloomberg chitchat these days) will create a big trend.
whatever trouble America is in Europe is in bigger trouble as parts of the Eastern countries will default soon and the agenda of the powers running part of the planets is to bring Europe into the limelight as a set of the most incompetent chancellors and prime ministers is running the European Titanic into the ground. That is exactly what this ‘club’ is looking for. Europe is also much closer to any geopolitical fallout which will develop soon in the middle east. Europe needs to be destabilised to change the power game to the benefit of the ones who are pushing this scenario.
The chart says the next decisive move is toward a break of the triangle on the south side and the target should be 1.05. What ever the direction is it will be followed by a 25-30 points follow through basically. At current 1.42/4 resistance the Eur will turn around and test the lower end of the triangle again that is in sink with a correction of the stock markets.