Fundamental analysts are all scratching their heads these days! How can USDJPY be declining rapidly, All the while EURUSD and GBPUSD are accelerating lower also.
So the USD is both weakening and strengthening at the same time!! [I. e. strengthening against the Euro and the British Pound and weakening against the Japanese Yen]
This does not compute in fundamental analysis. However, It is perfectly acceptable, and even predictable, with Elliott wave analysis!
And the reason is simple; The USD is correcting lower against the YEN, While; The EURO and Cable are both declining against the USD in a trend move.
In this scenario; The same currency, while moving in different waves, can seem to send conflicting signals to the market.
But; Viewed through the lens of the Elliott wave model, these moves make perfect sense.
AJ adds: the change in the currency markets reflect the European reality. The European Union is coming apart. The German and French idea of remaking Europe as an Islamic Republic with the means of the invasion by 100 Million young Muslim men is strongly resisted by the Eastern part of the EU (I. e. Hungary, Slovakia, Chekia and Poland + 2-3 others). Brussels beaurocrats issued an ultimatum to the Visegrad four to admit their quota of Muslim and African invaders and the four refused. Brussels put the four on notice that there will be sanctions. Hungary's PM reminded the Brussels traitors that they have no authorization from their voters for what they do, whereas Hungarians voted 95 to 5 against the plan to undo European culture and national identity. The four will be joined by Slovenia and others and maybe Italy. The Russians do not like NATO, but their alliance with Iran complicates things.
In this environment, the Euro will fall, perhaps disappear. Expect Fatima Merkel to change the name of her party. Christian it is not.
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