Friday, August 11, 2017

A smorgasbord of structures

There was a range of structures across the board to contend with. USDJPY was pretty straightforward and should still head lower to complete a 5-wave decline. It will start the day with a minor correction before heading down to the target area I’ve been suggesting.

Equally, both EURUSD and USDCHF did their stuff too. EURUSD saw a mildly deeper pullback lower initially but then a second 5-wave rally. Could this be the final high? Well, it’s not that easy because of the zigzag higher. It could just be a shallow correction but it could also have the potential for a flat or expanded flat. The Swissie has also done the stuff it needed but needs a new corrective low to complete this particular low.

What of GBPUSD? Well, it made an attempt to move back to the 1.3027 high but has been floundering. Like EURUSD there’s still the risk of a complex correction in GBPUSD. If so, then we could see another follow-through in both EURUSD and USDCHF while GBPUSD could see an expanded flat.

So, it’s a bit tricky. The first thing is to complete the current structures in play. Then we can begin to see how the next few moves develop…

Even EURJPY has the potential for an expanded flat. That is quite possible because of its initial 3-wave set up. Just note the extreme of the expansion in the report.

The Aussie. Are they on holiday by any chance? It certainly didn’t take the advantage of pushing higher so I’m just a little cautious with this pair. Something, somewhere, has to give… It’s probably best to abstain today.

Have a great weekend
Ian Copsey  

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