Friday, March 23, 2018

COMPLICATIONS

I can’t say that yesterday was an easy day. The fact that USDJPY has slipped lower this morning didn’t help. However, as far as I can see, we have completed the pullbacks in EURUSD and GBPUSD. In USDCHF we are looking at a deeper pullback.

Basically, the pullbacks in EURUSD and GBPUSD should be seen and that allows USDCHF and USDJPY to complete their final losses. The relative moves within the majors are basically quite equally measured. Therefore, I suspect we’ll get back into general correlation by the end of the day and – hopefully – we shall see a more balanced directional development from next week. Thus, just think “pullback and reversal” and then watch the relative developments through the majors.

The comments above provide a guideline for EURJPY. It has seen some ragged swings but basically bearish although it needs an initial pullback (most likely limited) and then for the follow through lower. This should promise the larger directional move. Perhaps it will begin today – but certainly next week I feel that EURUSD is going to be more bearish than USDJPY will be bullish.

The Aussie should now begin to develop in a more measured way and should follow the template of EURUSD and GBPUSD…

Have a great weekend
Ian Copsey  







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