Thursday, August 3, 2017

Well, it’s imminent…

Just as I thought we’d caught the final high, the hyperactive EURUSD kid chomped through 2,000 candies and sent it higher once again… We have either seen that high but I fancy one more peak but only a marginal one. However, note the rising wedge low that is currently between 1.1810-30. The break above 1.1845 basically needed an alternative structure. I had been working with an [a][b][c] structure but the alternative from the 1.0340 low has taken the route of a triple three.

It also pulled up GBPUSD but which, being the proper conservative English gentleman, the upside is more limited and should find its high today. USDCHF extended gains also, although in rather a sketchy, spider like track, is looking positive and while I am expecting gains to resume, I sense the rickety development will continue today.

USDJPY – was due a pullback – and did see a drop lower. I fancy a pullback now so there’s a risk of two – way trading in this pair. Once EURUSD has confirmed its high we should then begin to see stronger Dollar gains across all 4-majors.

While the majors are all basically in correlation (perhaps to a lesser degree in EURUSD) the Aussie and its amber nectar appears to now be seeing a consolidation. It certainly looks groggy and not really a pair that is worth trading today – even if I think it should go higher.

With the hyperactive kid pushing higher, EURJPY broke above 130.76 but there isn’t much further to go – and both 4-hour and hourly momentum are displaying signs of bearish reversals… Take care.

Good trading
Ian Copsey  

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