Tuesday, March 20, 2018

TURNING BACK TO THE DOLLAR BULLISH SIDE

Flip, I had expected a stunted move and reversal but the pullback developed a little quicker than expected. Clearly, we have seen some decent Dollar losses but I feel that, on the whole, (GBPUSD a possible exception) we have likely seen the full extent of the correction. However, I’m not quite so convinced about GBPUSD that seems to need another push higher.

USDJPY seems to be on its way higher but I’d like a little more development to really confirm the upside. The past two trading days really haven’t set the market alight so it still has some work to confirm stronger upside. It should – but I’d like to see a break above 106.41.

There’s a good argument for EURUSD to reverse its rally although there is a little more room on the upside – and I mean “a little”. The same can be said of USDCHF also. It’s just GBPUSD that could complicate the balance. I suspect too, that EURJPY should turn back lower also.

Finally, AUDUSD… This is really a tough pair. I have been surprised by the robustness of the decline – and appears to be heading to lower levels that should turn it back higher to a new daily high. Just how this develops is a toughie. Ideally, we should see a deeper pullback before it can turn back lower. I’d suggest taking care in this pair…

Good trading
Ian Copsey  








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