Friday, September 1, 2017

Conflicts between the pairs?

We have finally settled the highs in USDJPY and USDCHF and also the low in EURUSD. Now we need to establish the depth of the corrections – and that’s the difficult part. So far, EURUSD has been the most obliging of the other two and seems to be relatively close to completing a double zigzag. From what I can see, USDJPY and USDCHF appear to need a second decline. Thus, to a degree, we seem to have a basic level of correlation and it’ll be best to watch for USDJPY and USDCHF because they have a firmer outlook. Ideally, it will be convenient if they all stall around the same timeframe – but let’s see…

Now, GBPUSD has seen a zigzag higher – but frankly needs losses. There’s barely any room above. Whether this will be direct with a break below yesterday’s low, or form a complex correction – flat or expanded flat.

AUDUSD dipped a little further but should now see gains – probably helped by the Dollar bearish outlooks in JPY, CHF and EUR. However, it’s still in a foetal position that has little to show in terms of structure. Hopefully, during the day, we should begin to see some logic to the development.

As for EURJPY, we have seen some losses followed by a pullback. Thus, how USDJPY and, maybe a slower EURUSD, I suspect we’ll see the cross dragged lower.

Have a great weekend
Ian Copsey  

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