Wednesday, July 9, 2014

Development to continue as expected

That was a good day, targets met in USDJPY, EURJPY and AUDUSD while the Europeans are still in the middle of corrective structures but constructively so. That basically sums up how things should be developing today. We should see USDJPY and EURJPY correcting higher and the AUDUSD moving back lower… If I see any “problems” in the JPY pairs it could be that we’ll see some complex development, more likely in USDJPY rather than the cross. There will be a strong need to observe the ménage-a-trois between EURUSD, USDJPY and EURJPY given the potential deviation in USDJPY.

The Europeans progressed well but I don’t think the Continentals have completed the Dollar losses at this point. There are no particular indications that they have completed their corrections although technically, in this position, there is a wide range of corrective limits. Therefore the need to be alert remains present. However, from the losses seen in GBPUSD of which I had warned, the prospect does still seem still seem to be lower. This does raise a small alarm bell if they all develop in correlation but recently the link between the Continentals and GBPUSD has been almost non-existent.

This is a relatively short summary today but basically sums up the basic expectations…

Good trading
Ian Copsey  

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