Monday, September 11, 2017

Time to slow down

Friday’s development was constructive. Indeed, we have seen some good moves but we’re now moving into the last legs of the pairs. Where I have most uncertainty is in EURUSD. Otherwise, USDJPY, USDCHF, GBPUSD and AUDUSD are now looking to complete their moves. I sense it may still take a while to complete the move. I see the potential for two or three of the pairs to develop in complex corrections. It’s not set in stone but from the balance across the pairs – GBPUSD possibly taking a slightly different route – I see a stronger likelihood of a more cautious market from this point.

It’s EURUSD that bugs me the most. From what I have seen, it tends to suggest a completely different outlook. I suggest watching the initial moves after the open. Ideally, it should see direct gains – completely the opposite of the other pairs. So, just in case I have screwed up the current move, I’d suggest taking care. Once I’ve seen enough of the development I should be able to send an update.

That USDJPY saw deeper losses rather than recovery it dragged EURJPY lower. However, now it should see a deeper recovery. How this develops between EURUSD and USDJPY is going to be important but it does have the potential for a modestly deep correction should EURUSD remain strong.

Have a profitable week
Ian Copsey  

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