Friday, March 2, 2018

CAUTION

Yesterday’s development was basically as expected. I hadn’t been looking for a stronger follow-through on the upside but looking to see some endpoints. Towards the end of the day, that’s exactly what we got. However, I have some conflicts in the pairs in terms of the balance between them that tend to have endpoints that do not seem appropriate. In particular, GBPUSD appears to have formed a low but the pullback is currently extremely shallow – but at the same time EURUSD and USDCHF appear to have limited room for the Dollar downside. Certainly, I feel the Wave [i] and Wave [ii] appear really shallow.

I note that USDCHF is above its rising 4-hour Price Equilibrium Cloud while USDJPY is dangling just below its 4-hour Cloud. Meanwhile, EURUSD has popped its head above the 4-hour Cloud while GBPUSD remains below a rather sharply declining 4-hour Cloud. This doesn’t seem to suggest much correlation. 

Therefore, I’d like to take a cautious approach today to try and resolve the conflicts through the pairs. Some additional development may well provide us with a stronger way through. Preferably, I’d like this to be Dollar bullish – but I’d like to see confirmed breaks.

Have a great weekend
Ian Copsey  








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