Monday, May 22, 2017

A brand new week

New Dollar lows were seen in the Euro and Swissie on Friday – something I hadn’t wanted but there was always room to move into. We’re generally seeing 4-hour divergences but we now need to confirm any reversal.

In contrast, USDJPY managed to retain a sideways consolidation while GBPUSD levitated higher but failed to conquer another (Dollar) peak. The Asian pair has seen a minor new corrective low – but still in the (lower degree) Wave b/iii position with a 90% retracement so we can expect gains today.

GBPUSD opened with a modestly deep gap. I’m still a little mixed on this pair and I’d like to say that we’ve seen a final corrective high but I’d much prefer to wait for this morning’s low to confirm losses. Until then, there does still seem to still be a risk of a new high…

The Cross – EURJPY – made steady gains but I can’t see any firm signs of a reversal as yet and therefore we still may need to see a break above Friday’s 124.93 high. Most likely USDJPY will be the driving force but as mentioned above I still cannot rule out EURUSD joining in with a potential new peak.

The Aussie… well, it does what it does. There’s room on the upside but I doubt too much. There’s a decent 4-hour bearish divergence developing – even an hourly bearish divergence from the 0.7447 high on the 15th May. Thus, be aware of both sides of the market…

Have a profitable week
Ian Copsey  

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