Originally Posted by
;
The USDX fell. USDJPY is a part of the USDX basket. USDJPY fell than EURUSD rose. Therefore, EJ drops.
It used to be: weak USD strong stocks = rising carry trade (strong majors exotics a JPY that's weaker than even the USD).
FA:
From the large unwind it seemed buying USD for risk aversion was the reason the majors fell together with the carry pairs and exotics.
Today the USD appears to be wobbly due to recession and rate cut risks and stock markets dip because they are all proxies of the DJI =gt; europe back in drama (anti-USD), but shunning carry.
TA:
There has been a bounce out of a technically considerable USDX degree at 80 which unfolded in 3 waves of ABC which subsequently showed in a correction in EURUSD(and many others ), albeit a bit exaggerated.
After this the next spontaneous wave / a trend continuation happened as USDX hit some fibs / MAs / s/r, and later lost a trendline and the spike on Friday occurred.
Whatever else happened in the actual universe was of no issue to the chart.
I much prefer the chart.
At the end it doesn't matter exactly why as long as you understand ahead of time what the chart is saying where matters goes. If a TL breaks, if there goes a 10 touch s/r , if key amounts go, it's pretty much irrelevant what the rationale is , fact is - it's going.
But it's funny that there's always the need for an outside reason, also.
(I wonder as well a lot, makes it even more peculiar. Seems we always need a reason other than what the chart says)