Wednesday, December 20, 2017

The market is like a yoyo…

I did get some Dollar gains yesterday but not throughout the 6 pairs. GBPUSD saw losses but then gave them up. USDJPY made a gallant rally and the Aussie did its best to copy GBPUSD. Otherwise, USDCHF lunged one way then the other. EURUSD just decided that it wanted to try and scale the mountain and that helped EURJPY to form an expanded flat. Now that was a feat. I would never have thought that we’d see a rally so perfect. This was an expanded flat in a Wave (b)/(iii). The “original” Wave (b) was at 133.88 – a 91% retracement. The expansion made it to 133.91 – the absolute maximum that I have seen in this position. That it fell perfectly between 133.88 and 133.91 is just preposterous!! Both 15-min and 30-min momentum provided bearish divergences…

Thus, we should see USDJPY move lower – and I suspect EURUSD also…

My suspicions in GBPUSD tend to suggest that we are seeing the triangle scenario.

The Aussie, while having some room on the upside, is expected to extend losses…

Still, as I mentioned yesterday, this time of year the market liquidity tends to be limited and the “fractalized” lower degree fractals can cause problems. Take care.

Good trading
Ian Copsey  







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