Tuesday, January 23, 2018

STILL NEED CARE

The market clearly needs a catalyst. Yesterday’s sideways trading drew yawns throughout – but there was an exception that was GBPUSD. It surreptitiously poked back higher in an overlap that now needs further gains. Having said that, we appear close to a pullback lower. At the same time, EURUSD baulked against the downside and decided that a broad set of swings took it sideways… Hence, USDCHF basically decided it didn’t want to really break any limits and sat back down in protest. All hail sleep…

I was in two minds in USDJPY yesterday. I still have some reservations although there is a basis for a firmer follow-through higher. I estimated a Wave -b-/-iii- pullback to the 50% retracement where we have some support and this is where it stalled.

We’ve seen a Wave (a) and Wave (b) in AUDUSD and that implies further losses.

Overall, it seems to me that we need the Dollar to take the lead now…

It’s just EURJPY that needs to resume losses from within the 136.30-136.63 range…

Good trading
Ian Copsey  







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