In early June John Taylor of FX Concepts said he was short the Euro and long the US Dollar to every one amazement! Folks on financial TV couldn't believe it. The current euro sell off is proving why John Taylor is one of the worlds top currency traders. Always follow the folks you make 'bank' more so that those that dont.
Nobody should execute investments decisions by what people say on TV, you should always apply your own analysis, we like to apply our Wyckoff 2.0 methodology. After all John Taylor was talking up his book, so we must consider that.
Wyckoff 2.0 on the FXE Etf (EURUSD).
- We have a topping pattern with Wyckoff 5 phases A to E. E being decided.
- We have price obeying the bearish red 1x1 Gann Angle
- We also have a powerful Hurst Cycle inversion (however this is a work in progress).
- Price has broken support (Ice).
- We must monitor the sell off (phase E) with Gann Angles 1x2 and 1x1 to see if it remains a pure mark down phase, along with volume and minor price swings.
The chart is very bearish. The EU and China are doing what they can to stop the euro from falling, because if it does this means a US Dollar rally. Nobody wants a break out of sound money in US Dollar terms. 60% of all SP500 companies revenue growth is based on the ability to export, a higher dollar does not support the cause. Therefore to go short the Euro (FXE) and long the US Dollar (UUP) you have on the other side of the trade the EU, China and US Government. John Taylor did not waiver he took the position and is winning. Go John!