Poor Yellen, economic utopia built on the back of an anachronistic 1930’s stimulus policy at the expense of lasting economic prosperity now comes to a close. The reality of Trump beat 8 years of false idealisms and smacked poor Yellen hard. Prosperity and monetary policy is a bottoms up rather than a top down approach where supply creates demand rather than vice versa and allows economies to balance in equilibrium. The US was im balanced. If Yellen would’ve read Say’s law and the Treatise of Political Economy and Law of Markets, she would’ve had a better time. Since Nixon, the top 15% of government are political appointments therefore a small minority stuck in a world that doesn’t exist wrestled control to rule against the majority.
Once the US stimulated, every economy in the world was forced to stimulate to ensure their currencies, their national sovereignty were integrated inside USD. The currency and economy is then protected from wild movements and at the expense of daily volatility. The exchange rate is an economic rather than political document and the foremost aspect to protect. This stimulus move was forced upon nations by the iron hand of the small elite practicing non Laissez Faire economics. The reality of non Laissez Faire practices are seen in the 12 failed economic experiments of the BOJ since the 1868 Meiji Restoration. Each time, the BOJ became more creative in their experiments only to fail miserably in every attempt.
EUR/USD. The EUR/USD range is found from 1.0701 to 1.0438. USD offers EUR/USD and all non USD pairs its support. EUR/USD will run into brick walls at 1.0536, 1.0546, 1.0556 and 1.0557. Most important in the series is 1.0546 because above then EUR/USD travels on its own volition to 1.0582. Look for brick walls to stop upward movements.
The supports are many and begin at an important break at 1.0499. Then comes 1.0496, 1.0485 and 1.0465.The road is then clear to 1.0438, 1.0427 and a further support at 1.0407. Overall daily range is 91 pips from 1.0556 to 1.0465.
Brian Twomey, Inside the Currency Market, btwomey.com