In the 1980 election, Ronald Reagan not only became President but for the first time since 1928 and Hoover, Reagan was elected from the Taft wing of the Republican Party. America then suffered from typical Democrat Party economic disasters by lefty politics mixed with Keynesian economics. Left wing politics mixed with Keynes reigns supreme in the Democrat Party and disasters always follow since Wilson in 1912.
Reagan switched to a Supply Side price system just as his 1920’s counterparts coupled with tax cuts and the 1980’s just as the 1920’s ended as economic boom periods. The news media in the 1980’s just as today in story after story informed the world Reagan would lead the world into war, depression, disaster and loss of civil liberties. Obummer’s election turned into again lefty politics mixed with Keynes and the last eight years suffered the effects despite the news media informing Obummer was the economic hero.
Reagan like Trump was considered a tough talker because he informed government was the problem not the solution. Trump informs government is the problem, not solution therefore he’s on his way to switch to a tax cut supply side economic system. Trump proposes to take Reagan one step further by cutting taxes and government plus going dead into confrontation with the 100 year government establishment built since Wilson in 1921.
Is Trump Reagan and is Trump truly a Taft Republican remains a question. Economically, the answer is clearly yes. Took Reagan about 1 year to put economic plans in place then the boom began but Reagan was allowed the typical 100 day Honeymoon period. Democrats won’t allow Trump one day of Honeymoon because their power and existence is under severe threat. The next 4 years will see confrontations never before seen in politics and confrontations will play out directly in public rather than on floors of the Senate and House because Trump must also defeat the news media so his economic message and intention is clear.
EUR/USD. Friday, EUR/USD jumped 60 + pips to 1.0680’s from reported bottom at 1.0626. EUR/USD bottoms today are located from 1.0697 to 1.0690. Here EUR/USD will bounce.
The range is located from 1.0690 to 1.0889. Along the way to 1.0889 are 2 vital break points at today’s 1.0749 and 1.0727. Above 1.0749, EUR/USD runs into brick walls from EUR and the USD side at 1.0773 and 1.0780. Why the steel walls at 1.0780 is because a break takes EUR/USD to 1.0804, 1.0817 and 1.0824.
Below 1.0727, EUR/USD runs into masses of resistance from 1.0722, 1.0713 and 1.0702. Only a break at 1.0702 challenges 1.0697 and 1.0690 to take EUR/USD lower. Low of lows is found at 1.0492 and 1.0386.
Brian Twomey, Inside the Currency Market, btwomey.com