Wednesday, December 13, 2017

No change

I would have liked a more direct rally in the Dollar but I guess in the relatively few days towards the market lull between over the next 7-10 days the liquidity will drain even further and the risk could be for niggling corrections, consolidations and expanded flats. However, the overall outlook remains the same. The Dollar should be moving higher.

Perhaps there could be one possible expanded flat in USDJPY. It’s hanging in the air but if it begins to make further downside there is that risk… I had mentioned the 113.74 level being the barrier – a 38.2% expansion - and a sharp drop that does seem to have a good chance of the downside.

As for the three Europeans, I can’t see the same option as USDJPY. However, the seasonal thin market does require some care due to the plethora of deep swings that make life pretty difficult to note every single move. It’s not a time of year to load up a large position…

EURJPY is taking a break for a pullback but there’s a limit and this pair will need further losses before long. This could be initially the potential for USDJPY to complete the expanded flat but EURUSD has the potential to extend losses also. If these two pairs combine we may find the cross seeing some sharp losses.

Good trading
Ian Copsey  

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