Thursday, October 5, 2017

Let’s hope for a break

Clearly, the market appears to have had limited expectations of directional moves. We’ve also had the peculiar event of non-correlated moves. We’ve seen a bullish USDCHF along with EURUSD at times, even EURUSD rallying and GBPUSD declining. Mostly it has been a sideways ranging market and it’s about time that we bang the drum and demand a firmer outcome. Hopefully, there could be that decisive break today but perhaps the market has one eye on tomorrow’s Non Farm Payroll - that monthly kick we all get watching the 5-minute bars getting confused and not knowing what they’re meant to do.

You know what? I reckon this weirdness is going to continue… It makes me wonder whether we’ll see a narrower consolidation for a while…

However, there’s one pair that may point to a possible outcome and that’s EURJPY albeit that it has suffered a long sideways range. I still have a hankering for the cross to make a new low but that will take both EURUSD and USDJPY to join forces to make that outcome develop… Keep an eye on that one.

The Aussie is rather balanced. I called a 5-wave rally yesterday in an expanded flat but there is an option of having seen a final low. That would allow gains. Thus, watch for the first break…

Good trading
Ian Copsey  

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