EURO IN A BEAR MARKET

The Eurusd is well on its way into a correction with possible risk down to 1.30450.
If the Eurusd falls below the blue bands and fails to make it above the bands again
then its game over for the Euro. Either way we will know on the next Daily upside
crossover if it will make it above the bands after this decline. The Euro is in a  Multi
year Bear Market which is reflecting the current and future Economic future of the
European Union. The ultimate Bear Market bottom I estimate at 81.00000 which is
a long long way down.

The Dow-A Taste Of Whats To Come

this chart was created by http://danericselliottwaves.blogspot.com/2009/05/supercycle-top.html

The Dow -A Taste Of Whats To Come

The Dow is currently at 12042 which is the end of the purple line

stretching over to the far right on the Chart. The light blue line

falling to the bottom of the Chart is the expected path of the Dow

expected to bottom around 2015-2016. The Chart dates back to

the 1920's and includes the crash of 1929 which is the sharp drop

on the left hand side of the chart. Both the Chart and its expected

target of 400 ...yes thats 400 and the dates come from Elliot Wave

 International and its founder Robert Precter who is known as

 the worlds greatest market timer. With that prediction ofcourse

 goes the global economy. Is he often wrong? A few times but not

 too often which is scary. My target is 3000 which is bad enough but

 400 thats everybody wiped out period. Lets hope he's wrong this time.



EURUSD SHORT TERM DECLINE TO 1.3456

EURUSD DECLINE TO 1.3456 THE .618 FIBONANCCI LEVEL DAILY CHART

The EURUSD is in a short term decline to 1.3456 level before resuming its uptrend. (Above Chart)

Above Chart shows the Eurusd 4 hour compacted Chart.

                              
                                                        EURUSD WEEKLY CHART.



EURUSD WILL FALL TO 81 BEFORE THE MULTI YEAR BEAR MARKET
IS OVER. EURUSD IS CURRENTLY AT 1.3606
Above Chart shows the Eurusd Weekly Chart. This is where it gets interesting.
The Eurusd is in a massive Bear Market Decline which should go on for a few
years.  When the just happening Daily Trend resumes after a short term decline
the Bear Market will kick in but its too early yet. It will be a fantastic opportunity
to Sell the Euro against the Dollar. This can be attributed to the European Contagion
which is gathering steam. The 750 Billion rescue fund will not be nearly enough to
cover the Funding requirements of Spain who alone needs 900Billion to a Trillion
Euros, not to mention Portugal, Ireland, Greece, Belgium, Italy and then France.
Germany alone will not be stong enough to carry the above nations. Then of course
the East European nations will have to be taken care of to avoid anarchy such as
Hungary, Yugoslavia, Latvia. Nothing like a Baltic war to turn europe upside down.
We are currently observing in Egypt what happens when people are repressed and
starving because there is no jobs and no Welfare or Unemployment Benefits. Their
will be a hugh urge on behalf of European Soverign Nations to assert their Economic
perogative and they can only do so by going back to their own Currencies and leaving
the Euro Currency but stay within the EU. That way they can print their own money
and do what the United States is doing and engage in Quantative Easing a fancy term
for printing money and the risk of Hyperinflation for having done so. By devaluing
their Currencies, by printing money and increasing the Money supply they can settle
their Debts with cheaper Currencies. Every great Power in History fell by engaging
in such Policies, is it time to learn Mandarin or Cantonese.

Mike Ryan