Monday, December 4, 2017

Broad but with swings – initially Dollar bullish

Well, the Dollar did manage to see gains but in the second half of the day, it all just vanished in a deep correction. Frankly, I still can’t see the Dollar reverting to the daily downside. Having said that, the market has been very skittish and there’s a risk of broad swings before the main trend can develop. So we’ll still need a large dollop of care, perhaps even a sideways move in a consolidation.

If there is any pair that could see Dollar losses, then it’s GBPUSD – but – not from the start of the day. Initially, we should see losses in the Pound but later extend further gains but this basically implies a broad swinging move as I suggested above.

The shocker was a new low in USDCHF. It has bounced slightly but with an hourly bullish divergence but on bearish 4-hour momentum. This could still be a bit tricky. Much depends on how well it manages to rally today…

As for EURJPY, we have a bullish USDJPY and bearish EURUSD. It doesn’t bode well for a trend really – but my outlook is for an initial pullback higher and then for losses.

Finally, for AUDUSD… I hadn’t expected such a deep pullback. It could just be a pullback but there’s also the chance of an expanded flat. Just keep those two options in mind.

Have a profitable week
Ian Copsey  

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