Tuesday, September 26, 2017

Some swings today

Once yesterday’s early hiccup sorted itself out we basically saw the Dollar losses – and along with that EURUSD – that triggered the deeper losses I had been expecting in EURJPY. Indeed, the Cross reached my target and a bit below. In fact, I don’t think we have seen the final low yet. But that’s where the headline makes a point.

Broadly, EURUSD, USDJPY and USDCHF should see a weaker Dollar initially. It’s a modest pullback only so we’re still basically within a larger degree rally in the Dollar. In GBPUSD… well, it was rather a puzzling decline once the early recovery to 1.3570 was seen. From what I feel we have seen, this pair may buck the trend – at least initially. However, it doesn’t really have much room for much deeper – 1.3494. Thus, as long as this caps we should see a new corrective low and then a pullback. Otherwise, I have interpreted the decline incorrectly.

That just leaves the jolly old Aussie that bumbles and hums to make sure it goes nowhere in particular – but it ain’t a crime. However, at some point, the bumble’s sting is going to trigger a stronger rally. Keep an eye out for that.

Good trading
Ian Copsey  

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