As per technical side SANK as per 1M Stoch RSI. That factor will certainly prevail which will cause stronger EUR and regaining the ratio in a favor of EU currency.
*MACD. multy cross on 1W
*1M KDJ bottomed.
*RSI hit the bottom on 1M timeframe.
Strong EURO will make Europe less competitive and leading towards implosion in certain timeframe (strong currency, bigger export prices, unable to " compete" and participate "under same conditions".
ECB made 2 stimulation packages in an amount of 500 bn + 250 bn euros in order to increase liquity.
US added few trillions too, now continualy increases interest rates.
As every other stornger economy, Europe will become less competitive, (gas price is 3000$) and so on.
Petro dollar benefits from this, but, eventualy, US economy will collide and EU will follow.
Hi!I liked your point of view, but I'm a little more pessimistic about Europe and the US, as they are doing the same thing, a big mistake.
milanjelic
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@MacD_Bollinger, euro grows, EU becomes less competitive which leads to implosion of market, while USA gets their foreign debt on discount.
MacD_Bollinger
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@milanjelic, Yes, those are the triggers that will fuel the economy for years to come, Europe shrinking economically, and the US having short-term peace. I have a slight impression that no later than 20 years later the dollar will cease to be the "exclusive" currency of global trade, where, the world will do as in 1944 (Bretton Woods), convene a new conference to create a single and global currency , based on "production - GDP" (meritocracy), where we will experience a new "arms race", however, focused on new technologies and sustainable developments!
I'm thinking like George Orwell. Lol.
milanjelic
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@MacD_Bollinger, meritocracy is only present in China where if you are for example the best doctor, the place of the doctor is provided to you by the state in order to give you best to your people and provide best services, because that is the only country which thinks and plans upfront. That's the reason we they are number 1 economy in the world.
MacD_Bollinger
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@milanjelic, Yes, on that point you are right, China does this very well. It is an ancient culture, and they have learned from their mistakes and successes how to prosper. But we all need to be careful, because countries only have one interest, their own and in this ordinary world, the most intelligent and resilient ordinary people win, which at the moment is China!
milanjelic
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@MacD_Bollinger, Well, China is 5000 year old empire which never invaded anyone nor built their economy or someone else's back, but solely on their own. They have watched many empires rise and fall and they managed to survive despite all circumstancies. Roman, Persian, Otoman empire have risen and fallen, while China remained the same and rose up now. From 1990-2020 they have managed to catch US. Till 2050 they will be 3 times stronger than US.
MacD_Bollinger
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@milanjelic, Exactly 5000 years of experience and wisdom! And as you said, in 20 years they have managed to evolve quickly, of course, they have largely evolved by "plagiarizing" technologies, but over time, they have been understanding and improving their technological knowledge and today they are able to develop their technologies on their own . Now that is a huge advance!
But there is a phrase that goes like this: In the world nothing is created, everything is copied! lol