Back in August, we had been holding out the possibility of a US dollar bottom and concurrent top in EUR/USD. It looked good for a short time, but then price went into yet another long, drawn-out corrective process. When that became apparent, we immediately scaled back on our short-selling ambitions the Euro realizing that a correction resolves into the prior trend (which, since March, has been up, right in line with the bull-market rally in the Dow).
More recently – going back to last week – we advised subscribers that it was time to shift back into a bullish stance on EUR/USD, but clearly noting that we were into the “tail end of a fifth-wave advance at various degrees of trend”. Put in plain English, that meant that the latest rise (from the lows for the week of Sept. 7th) was likely to be the last before what is expected to be a major topping process – again, concurrent with a major bottom reversal on the dollar. And please note how totally contrarian this outlook is to what so much of the mainstream thinking is along the lines of a dollar collapse due to some imaginary hyper-inflation (which, incidentally, is about as empirically evident as leprechauns running around in the forest).
Interested in what led us to our latest near-term bullish forecast for this pair? Wondering where it’s likely headed next?
For answers to these questions, please watch this week’s video presentation.
-Frank
