Wednesday, January 24, 2018

INITIAL CAUTION – LATER LIMITED DOLLAR GAINS

The market remains pretty cautious – and pretty close to the recent Dollar lows also. I’m pretty certain GBPUSD will make a new high.  I’d prefer for EURUSD to hold below the 1.2323 high but there may be a risk that it could make a new high also, but it’s touch and go. We’re also close to the 110.19 low in USDJPY but even that can be broken. USDCHF has plenty of room to make a new corrective low.

So the 4-Majors are really set to have a cautious day but this should provide a catalyst to generate a more bullish Dollar. Even then, we’ll still need to work through the initial foundation waves so there’s hardly a great outlook over today and, most likely, tomorrow. It all seems pretty glum…

From the 0.8038 high, we have seen an ABC lower. I’d like this to be a Wave i but we’ll need to take care in case we see yet another high above the recent high. Either way, the outcome will return to the Dollar upside – even if the Dollar Index has seen a marginal new low.

That leaves the flailing EURJPY moving sideways to higher.

It looks like a tough day but one that should eventually provide a more Dollar bullish resolution…

Good trading
Ian Copsey  







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