Thursday, July 10, 2014

Targets met… on to the next stage

It was a relatively controlled day with no significant shocks. There was a mild diversion in the Continental Europeans although within the boundaries I set, but overall we saw my targets being approached. These should be finalised over the course of today to allow the next stage of the development to continue. This has meant, with the exception of GBPUSD, the general expectations I outlined in Monday’s weekly video outlook are still on track. There is still a bit of hard work to be done but, so far, so good.

It is still GBPUSD that confuses me most, its indecision and wild roaming causing the structure to risk morphing into something I haven’t anticipated. It really needs to make a more definite statement to provide clarification. Until then, and considering the expectations in the Continentals it’ll be worth holding off to allow it to make up its mind.

The Aussie has broken above my extreme target but we do have a potential bearish divergence. This implies an alternative structure and we need observe the short term structure and reversal indications to establish the high but I still feel this will end up going lower…

USDJPY and EURJPY pushed higher as expected. I think there’s a bit more to go but we’re stretching the upside limits now. The balance here is in the timing for EURUSD to top out versus USDJPY. This should make EURJPY a better vehicle by the second half of today.

Thus, remain steady until the European session. We should start to see better movement in the second half.

Good trading
Ian Copsey  

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