Well, we are hearing (once again) about the death of the dollar as the worlds reserve currency and all that … that will probably happen but not just yet.
Either way, we have hit a VERY important support level on the USD. Measured moves make the world go around … we hit the measured move, the long term polarity trend line and a butterfly buy. Exactly.
So, little bit of a judgment day for the US Dollar. I find it hard to “see” that the down more is over simply based on “balance, form and proportion” BUT this could be a MAJOR low in the USD. Go figure …
I’ll wait for the first BUY PATTERN to emerge and see how the dollar reacts to that …
For now, watch the downtrend line from the old high .. a breakout (daily close) above that trend line will be a good hint that probability is shifting to a big dollar low.
For now – the patterns worked – but I’m going to watch and see how this plays out.
I’m currently LONG the USDJPY via an ETF so a strong dollar doesn’t necessarily fit the USDJPY narrative I’m working w/ .. even though the USDJPY is only 14% of the USD Index (majority weighted in EURO) it still has more weighting that the USDCHF and the GBPUSD. So, this is an interesting one – for sure.
The EURO is smacking against some SERIOUS trendline resistance that goes back to 2000 and 1985 (synthetically).
Remember, the Euro wasn’t adopted until January 1, 1999. So, the grey box below is the “synthetic” version of the EURO w/ the Deutschmark and other currencies providing a “continuation” into the time frame of Bretton Woods.
Either way, pay attention to the “orange measured moves” as that looks to be a pretty good “beat” for price action. IF the EURO blows thru these trendlines then the next target certainly looks to be 1.15.
On the podcast “Trendlines over Headlines” I discussed how measured moves can also be used as time components. Took a few seconds to show this concept by taking the Orange and Blue measured moves and flipped them to horizontal to create the time component of the measured moves.
Folks … look at the chart below. From the 2000 low, you can see that the “measured move in time” was pretty accurate. Now, mind you, this is a MONTHLY chart so we have some “time” for the cycle to hit. But, you can get it down to the day and the hour. Something I’m working on … not quite there, yet. But, I just “like” the measured moves ….use them.
PRICE = TIME. They are the same thing on a chart …
Here’s the creation of the Vesica Pisces for the EURO. For no other reason than to test it out, I’m going to use that first synthetic drop as the “seed”
Now, mind you, this isn’t something that you can really invest/trade off of but, for me at least, it’s a good exercise every now and then. 🙂
the Vesica Pisces is the manifestation for the creation of life and is where the numerical equivalents of the square roots of 1-5 come from … it’s inherently nested in Metatrons cube (Archangel Metatron is – according to legend – responsible for the geometry of creation. Mr. Robert Edward Grant has done AMAZING work showing how this happens and has recently PROVEN that the 3 pyramids were actually constructed at the same time w/ Metatrons cube in mind .. it’s amazing.
Anyway, the market vibrates and is harmonic and abides by natural law. Just like everything … our job is to find that “beat” and “vibration” and then give it a whirl. One last, note, you can move the vectors horizontal to show the TIME component. I would do that but .. need to go do some “work.”
Cheers and make it a great day.
Every PRICE move .. based on the Vesica Pisces. Believe it … or not.
Some extremely important “polarity” principles are being tested w/ the EUR.USD currency pair.
The principle is that “former support” will become resistance or vice versa. In his case, we have the low from 1985 and the low from 2000 showing former support that, now, SHOULD be stiff resistance.
If we power thru this level then the .618 retracement (note measured move orange arrow) looms as the next big resistance level.
5 waves complete … wave 1 = wave 5 (blue arrows) .. initial impulse wave natural log and/or square root 8 projection … ffrequency target (good stop out if it blows thru) …1.732 extension from of wave 3- 4 (note, wave 3 = 2.236 (square root of 5) ….
all this being said, this is 5 waves UP folks so the coming pullback is one we want to BUY … for now, that’s around (previous wave 4 of a lesser degree) in/around 1.05. we’ll just have to wait and see …
this is a ‘nice’ Gartley SELL pattern and, to be honest here, would sure like it to “work” as I want (hope (a strategy)) for a move lower down into 110’s to complete 6+ year triangle … as we have discussed, triangles have 5 legs a-b-c-d-e and, right now, my hope ( a strategy) is that we are carving out the “e” wave and then .. game on for an explosive move w/ the USD versus the YEN.
if we blow thru “d” will have to get out the eraser and take a peak …
either way, believe 2022 will see the USD EXPLODE HIGHER against the YEN.
keep an eye on this very very very key level on the USD Index. correspondingly, here’s a EURO BUY PATTERN present inverse to the USD. (it’s usually how it works)
LOVE the Loonie … as you can see below, IF (the big IF) you can catch a wave this FX pair likes to run .. in either direction. well here comes a wave …
at 1 we have the classic AB=CD and, at least for now, it is holding …
at 2 we have a lot of MATH coming together along w/ a corrective (dashed red line) move that has present on most EVERY major corrective pullback.
w/in both above (1 and 2) we have the TIME dashed green line … that’s pretty key to me. Something (hint hint look up at the sky at night) has been responsible for the corrective TIME of EVERY MOVE DOWN since the beginning. a measured move in time, if you will. if your wondering, the dashed orange line is of course harmonically related by fibo .382.
guess what, I’ll WAIT for that … and that’s the end of the summer, and I’ll table the Loonie but I wanted to show the power of TIME and PRICE combined. Guess what, if it doesn’t work, there’s 50+ other currency pairs. I’m trying after so so many years fighting to make this easy and enjoyable …
