Buy EUR/USD – Before Tuesday Afternoon

You’re going to want to buy EUR before Tuesday.

This trade fits into the exact same framework we have been working with…with respect to The U.S Dollar taking a very large nose dive –  very, very soon. You can see in the chart below that EUR/USD has now put in an absolutely “classic swing low” right at the 50 day moving average…after completing only the first daily cycle of this new “intermediate cycle”. This suggests that we’ve got several more daily cycles to go ( lasting somewhere between 30-35 days each) before this upswing completes.

I would imagine the 200 day moving average ( marked in red ) should be the next target. That’s some 350 – 400 pips!

Buy EUR Before Tues Afternoon

These correlations with The Euro, USD and Gold are batting near 100% right now….as you can’t have The Euro rise without USD moving decidedly lower. The same thing goes for Gold, and if you really want to nail this…feel free to get long The Japanese Yen ( JPY ) as well. Yen chart looks exactly the same as EURO.

So…only one more asset class to consider here right? U.S Equities.

I can’t stand the stock market right now, as it’s continued rise goes against just about every fundamental principle I can drum up. There are too many indicators and factors to list – all suggesting this thing tops out  soon…or at the very least – makes a serious correction. The stock market is cyclical and there is not a single thing “any acting president” can do to change that.

Trump has certainly “empowered the common man” with the talk of bringing jobs back, and I can certainly appreciate that but…..it won’t last. Unfortunately for stock buyers – foreign exchange leads the way and the message is painfully clear.

This thing needs a complete and total reset before some incredible turn around in the U.S economy will be realized.

Wash rinse repeat people. You know this. Has it ever been any different?

4 Responses

  1. Simon February 19, 2017 / 1:48 am

    Hope you’re right Kong as i’m short DXY but not yet also long Euro….I thought last Fridays close was a bit weak though for the EUR bulls?

    • Forex Kong February 19, 2017 / 2:14 am

      Watch er on Monday…and plan to get in there before Tues afternoon.

      U will not be disappointed.

      • Abraham February 19, 2017 / 3:40 am

        The Eur chart is dated the 16 of feb . Eurusd closed at 1.0610 on 17th feb . If Eur closes below 1.0590 ( 50 day MA ) on Monday ( 20 feb ) would you reconsider buying Eur before Tuesday afternoon

        • Forex Kong February 19, 2017 / 2:52 pm

          If EURO goes any lower….I will consider buying even more.

          Wait Monday out…but I wouldn’t worry about a couple pips lower at all.

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