Monday, January 22, 2018

DOLLAR TO THE UPSIDE

I was a little disappointed on Friday. I had hoped for more direct gains in the Dollar but that was not to happen. Well, apart from GBPUSD that made a 4-point break above 1.3941, basically we saw a slow pullback through the other pairs. This should, over the day, reverse the Dollar back to the upside. It doesn’t mean there cannot be a Dollar correction lower over the Asian session, but overall we should see the Dollar resume its upward path.

However, I do have some reservations in USDJPY. The structure is a little vague and until 111.12-20 finally breaks. That should provide a stronger follow through. Until then, take care. The balance of the structures across the majors could allow USDJPY to move higher initially but if the other pairs come to a point where a correction is required there may be risk of a break below Friday’s low before this pair rallies more firmly.

This should see EURJPY remain in a range – or perhaps a modest pullback higher – before the 135.18 low breaks. An alternative would be a complex correction.

As for the Aussie, at long last, we are beginning to see it finally extend losses. Again, as with some of the other pairs, we may see a pullback higher early in the day, but overall we should see follow-through lower…

Have a profitable week
Ian Copsey  







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