North Korea – Cycles of War
Even Castro came out warning the 30 year old rash leader of North Korea against war. We tend to judge people by ourselves and assume since war is illogical that everyone else would see the same thing. That is VERY far from the truth. It is not our rational thought process that matters, it is always the other person.
I have been warning that China and Russia are very different. China is rising to rule the world from an economic perspective and that has fueled its national pride. Russia, on the other hand, lost its empire where China did not lose territory. Russia is still in the macho empire mode and we would be ill-advised to assume Russia would do nothing because we have no such hidden agenda. Beware of the silent type. Speak softly but carry a big stick as Teddy Roosevelt use to say. Russia is the greater danger and Europe has weakened its economy so they have no real power to defend. North Korea is grabbing the attention, but do not turn your back on Russia.
We will be updating the Cycle of War. Obviously, it is time once again. Especially since that model also hit to the day 3 times in a row.
Euro Closed 12994
The Euro closed at 5PM NY Time at 12994 2 ticks below the closing resistance target of 12996. The Euro will find resistance at 13007 early next week with support at 12845. Initial support will be at 12954 level where we should see the Euro retest. Nevertheless, a high the week of 4/15 still suggests a break to the downside thereafter.
Euro
Resistance for next week will be at the 13007 level. If we close below that today, the Euro will retest the mid 12900 area then move up into the week of 4/15. A close ABOVE 13007 on cash in New York will warn that the rally in the Euro may lead with stops and 13007 would be the first support area. The week of 4/15 seems to be the timing for the next turn with the target resistance in the 13130, 13290, and 13435 levels.
North Korea is threatening all Pacific Allies and China is not on their side, but Russia is. This is why North Korea is feeling its oats. So any rise in the dollar maybe starting the week of 4/15.