Friday, January 19, 2018

SOME CARE REQUIRED BUT FOCUS MORE ON A FIRMER DOLLAR

I wasn’t too surprised yesterday. There were a few wrinkles but basically the general expectations I had were basically close to my template. The hourly and 4-hour Price Equilibrium Clouds played quite a solid role throughout. Still, both GBPUSD and USDCHF failed to penetrate the 4-hour Clouds. I suspect they’ll manage to penetrate the Dollar bullish side of the Clouds today. They’re flattening out and this tends to suggest a penetration today.

In EURUSD and USDJPY, having already penetrated the 4-hour Cloud highs to reach targets and then corrected back into the 4-hour Clouds. We should see the Clouds support the Dollar for a stronger follow-through today.

The Aussie – and even EURJPY are similar to GBPUSD and USDCHF in terms of where the 4-hour Clouds have been thwarting the Dollar upside in the Aussie and downside for EURJPY. The Clouds are flattening out so I’m expecting penetration today also.

However, no doubt, it’ll probably take Europe and/or North America to provide the impetus.

Have a great weekend
Ian Copsey  







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