Sometimes it helps when you Zoom out and turn things UPSIDE DOWN to see the BIG PICTURE. While everyone and their cousin is Bearish Risk Assets, Bullish the $USD, & Convinced that the Market is about to crash, that is when its time for us all to take note. What is remarkable about the $USD (upon which ALL risk assets hinge at the moment), is the near perfect symmetry from its prior move and subsequent corrections. Both are similar, not only in structure, but in correction (remember this is on an Inverted chart, so that means the reverse). Both rallies (and on this chart, that means falls were equal to 55% while both terminated EXACTLY at their Key Fibs and reversed!) The last pivot high (on this chart, its low corresponds to the .5 Fib), and on our current price point its .786 Fib.
So what does this all mean in layman terms?
It means we are about to see a pivot on the $USD at the $110-$111 area that we have been calling from some time, OR IT MEANS WE BREAK HIGHER AND THE NEXT GREAT DEPRESSSION IS STARTING NOW.
The good news from a trading perspective is that the RISK/REWARD is as good as it gets. Either I am wrong and the Depression starts now, and I sell for a few bucks in losses, or I am right and the crowd will be chasing this move all the way to new ATH's in risk assets into 2023.
Regardless, 110-113 is the key area (note I am giving this a couple points of "Grace" since its a High time frame chart). If it smashes through resistance on the next monthly close, Powell will be right and BIG Pain awaits. Or just maybe all of the Media, the Crowd, and Even Powell will be wrong AGAIN.
Time will tell.
So what does this all mean in layman terms?
It means we are about to see a pivot on the $USD at the $110-$111 area that we have been calling from some time, OR IT MEANS WE BREAK HIGHER AND THE NEXT GREAT DEPRESSSION IS STARTING NOW.
The good news from a trading perspective is that the RISK/REWARD is as good as it gets. Either I am wrong and the Depression starts now, and I sell for a few bucks in losses, or I am right and the crowd will be chasing this move all the way to new ATH's in risk assets into 2023.
Regardless, 110-113 is the key area (note I am giving this a couple points of "Grace" since its a High time frame chart). If it smashes through resistance on the next monthly close, Powell will be right and BIG Pain awaits. Or just maybe all of the Media, the Crowd, and Even Powell will be wrong AGAIN.
Time will tell.
JT