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