Sunday my waitress was telling me how the USD was toast, and that I should buy gold, so let's take another look.
The implication for the Euro is dire, for instance a C=A down from 1.4850 targets 1.11.
The Japanese Yen is also at a significant juncture. After correcting up vs. USD in an ABC structure lasting TEN years, the Yen topped out Jan09 and came off in a clean 5 waves to April 09. Since then it's gained against the USD in a series of abc's that has taken it nearly back to last Dec.'s highs. Call that waves 1 down and 2 back up (or a and b). Last week Crudewire called attention to Yen vulnerability. See USD EURO YEN ETC and
Yen Leads the Way Down
If the Yen is beginning a 3 wave down after finishing a TEN yr. move up , the downside potential gets really intresting; for instance the move down in the mid 90's was from 125 to 68 , so IF this leg is a 3 or C down AND it equals A you're talking about it losing half it's value vs USD.
Hard to imagine right now. But then the unimaginable seems to be happening more frequently.
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