Will EU Beat the red resistance this time? I believe YES but only time will show. If I had a position in long term, I'd prefer let it run until it would be clear that can it beat 1.12 or not. {image}
-US500 is at its peak and has started to fall after retesting on TF W1/D1. The price of US500 component stocks are overvalued; more cannot be done now.
In the long term, it is extremely difficult for SMA200/W1 to become a support for the following reasons:
-first of all, what great deeds could the EU do to surpass the USA in the long term?
- compare the productivity of the USA with that of the Euro Area and you will find the answer to your question. When that graph reverses, then it would be possible to break that resistance;
- the USA will gradually reduce the federal interest rate to revive the economy;
-GDP per capita is higher in the USA compared to the EU;
- if the euro price goes slightly above SMA200 on the W1 chart, the dollar reduces the euro to silence;
- the EU has various problems that slow down the economy: war on the border, energy problems, political instability, but perhaps the most important thing is that it does not invest in innovation and research as the USA does;
- the USA has different social policies from those of the EU;
- the USA is the largest oil producer, the EU buys LNG from the USA now;
-USD is the currency used in most world transactions and the USA earns many dollars every second from any transaction in USD around the world;
- the engine of the EU, Germany, is in economic decline now;
- the EU is made up of heterogeneous nations, while the USA is homogeneous.
These are just a few aspects that come to mind at the moment.
