EURUSD(liquidity proxy)if BO parity, $ falls, gold,equity rally
EURUSD may be used as a liquidity proxy. It has been falling for a long time in a big down channel &
Is now bouncing right at the dotted median line . (4Q is historically bullish going into new year specially on
midterm election years, where markets bottom in late October)
Watch closely if EURUSD will break above parity 1:1 again in a big move. Then most probably that is where
the 4Q rally shall start extending to 1Q2023. I still believe there is still a wave 5 down for the C wave of the big ABC correction from ATH. In 2Q2023, ABC may end in a double bottom near the dotted median or even much lower to the lower channel in case of a recession, which is more probable in Europe than in the US.
After ABC completes sometime before end of recession. Equities will rally to the start of a new EW cycle.
Not trading advice
Is now bouncing right at the dotted median line . (4Q is historically bullish going into new year specially on
midterm election years, where markets bottom in late October)
Watch closely if EURUSD will break above parity 1:1 again in a big move. Then most probably that is where
the 4Q rally shall start extending to 1Q2023. I still believe there is still a wave 5 down for the C wave of the big ABC correction from ATH. In 2Q2023, ABC may end in a double bottom near the dotted median or even much lower to the lower channel in case of a recession, which is more probable in Europe than in the US.
After ABC completes sometime before end of recession. Equities will rally to the start of a new EW cycle.
Not trading advice