Wednesday, January 17, 2018

MINI-DEEP CORRECTIONS?

No deep corrections. However, in some pair that suggests mini-deep corrections. This is based on USDJPY that saw a pullback to 110.98 in a Wave -iv- and a Wave -a-. Thus we need to establish the Wave -b- and the follow-through in Wave -c-/-v-. EURUSD may well have the same outlook while USDCHF is still extending losses but that requires pullbacks. This may well be the same for GBPUSD.

Therefore, it tends to suggest limited Dollar losses now just to complete the final Wave -v-’s. We’re beginning to see Dollar bullish divergences developing in both hourly and 4-hourly momentum. There’s a good chance that we’ll see the Dollar lows today – but we’ll have to allow for any complex corrections.

It looks like EURJPY has topped out – and that tends to work with the general expectations noted above. However, it may well mean that the cross will be a little scrappy but overall bearish I sense.

As for the Aussie… well, as I have mentioned before, the structure has been as tough as old boots so it will be well to use small positions to allow for any possible minor new highs above 0.7878…

Good trading
Ian Copsey  







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