Wednesday, April 18, 2018

A DETOUR

Yesterday’s Dollar maintained the Dollar losses – although with a deep pullback. However, this move still needs further follow-through before we can see a reversal. For example, USDJPY has been steadily developing bearish corrective developments and still needs a follow-through to complete the third Wave -a-, a pullback and then a final 5-wave decline. Equally, EURUSD still has upside to develop while its neighbour in Switzerland should see a minor follow-through on the upside for a pullback lower. This should therefore suggest a 3-wave rally in GBPUSD. 

How long will it take? Well, I doubt we’ll see the completion today but perhaps tomorrow may find the final legs – but I’ll take it as it comes. There is one possible problem in GBPUSD. The ideal would be for a deeper pullback that we saw yesterday. However, since the Wave (b)/(iii) was very deep, it has satisfied alternation so it does have the potential for a more direct move to its high. 

AUDUSD? Well, I discovered an error in the development and this brings it forward. Of course, with the typical walkabout in Aussie land, we could still see some consolidation in the middle leg. However, basically we need to map out that 3-wave leg.

Keep things steady. By tomorrow end (most likely) we should begin to see the Dollar gains I have been waiting for. I note that there’s still downside room in the Dollar Index…

Good trading
Ian Copsey  






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