Wednesday, November 29, 2017

Today’s analysis should be considered as a wealth warning

Ok, the headline is dramatic but so much of yesterday’s development looked more like a 14-month old child’s scribbling. The number of data points to consider were just too much that, if I had to go through every point, I’d still be working at it through the coming week. Therefore, do take care.

What’s more, the losses in EURUSD have been deep enough to confirm the 1.1961 high was the final high in that rally. It could be THE high but we’ve only seen a double zigzag, rather like GBPUSD. Indeed, the Pound has seen a new high above 1.3382. Even then, there’s a chance of an expanded flat before the deeper rally.

As for USDCHF, well… let’s talk about the 14-month’s twin that has more imagination in terms of trying to hide exactly what’s going on.

In USDJPY, as I described yesterday, we need a 5-wave rally and then a reversal. Even the structures in that rally have been copied from the 14-month old twins. Perhaps this may be the easier outcome because we have a limit on the upside above 111.68 – so watch for the bearish reversal indications. This may be when the final legs lower in the Dollar can be seen.

The Aussie, blissfully unaware of the 14-month old twins, should maintain the downside but we all know that this pair can take a break and wander off into the outback for a while…

However, I suspect a pullback in EURJPY today but even then, being in a corrective phase, with the complications we have already it will be best to take care…

Good trading
Ian Copsey  







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