Monday, July 14, 2014

Ragged trading adds some caution

I was sitting and watching my 13-year old daughter begin to work out Sudoku problems this past week. I hadn’t paid much attention to these puzzles. I have to say that I find them remarkably similar to using the spreadsheet in Harmonic Elliott Wave and over multiple markets which adds another layer to be more like solving a multiple layer 3-D Sudoku problem…

The Europeans certainly confirmed this view as they went through some hoops and under some hurdles on Friday – not really my favoured outcome but one I had outlined in EURUSD in Friday’s report. It has added both a higher degree of complication and imposed a much tighter requirement on how this needs move forward. In particular it imposes very tight projection targets if the outlook I have proposed is to remain intact. While strict, it does also provide a strong guideline to where the structure breaks down.

AUDUSD did not surprise and held within the limits I had set. This should join the Europeans by extending losses in some steady steps lower.

So I’ll retain my Dollar bullish outlook, it does still appear to be the more logical across both the Europeans and Aussie, but do be aware of the fragile nature of the structure in the Europeans in particular.

The JPY pairs… well, USDJPY behaved in a particularly strange manner but never really broke the resistance area I offered. It does therefore maintain my outlook although does require some care to be afforded. EURJPY was less at risk and failed to make much bullish headway and thus tends to confirm the downside but, of course, this could be fuelled by EURUSD rather than USDJPY… or of course, both.

Overall, there is a range of initial complications to overcome early in the day. However, the main outlook I have maintained does remain favoured.

Have a profitable week
Ian Copsey  

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