Thursday, March 29, 2018


Yesterday was a day of Dollar gains, very much as expected. As a template for today, I suspect very much the same. I can see that we’re moving into a corrective development but, in general, the pullbacks don’t really suggest deep corrections. Therefore, Asia will likely handle the pullback while Europe and North America will provide the “oomph” for the Dollar rally.

In particular, USDJPY forced a much stronger follow-through than I had anticipated and rushed through the (second) first reversal target. We’ll have to take care in this pair because it should run into several barriers, pullbacks and higher barriers.

Both EURUSD and USDCHF still have Dollar gains to go but there will be some intermediate pullbacks on the way. At the same time, GBPUSD being its own master has a similar development to USDJPY. Initially, the Pound will likely see a pullback higher before any stronger follow-through to the downside. This suggests that the losses in EURUSD will outpace USDJPY and that should see EURJPY looking to the downside.

And down under, we should see the same type of bearish development – with swings – as it moves lower.

Good trading
Ian Copsey  

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