Tuesday, April 24, 2018

WE’RE DUE A REVERSAL - BUT SOME PAIRS ARE MORE STAGNANT

Yesterday’s Dollar gains were pretty impressive. I hadn’t expected the degree of the gains and that avoided the swings. However, we’re now very close to a reversal and there may be a risk of a deep pullback. It was interesting to see the losses in AUDUSD – and running into the downside targets I had been looking for. The interesting point here is that, if I have the daily structure correct, then it will need a new daily high. 

That in itself suggests that we’re going to see some strong development across the majors. EURUSD is close to a reversal higher and could be deep. USDCHF appears to still have some further (limited) gains before losses develop while GBPUSD is closing in on a low for a pullback higher. I have some reservations in USDJPY but even here we should be finding a new high before a reversal.

So basically, the entire range of these pairs seem to have a rough correlation in terms of a reversal. However, I have a feeling that USDJPY will see deeper losses compared to EURUSD that should see EURJPY slide lower – or may be develop in a consolidation.

First thing – look for the Dollar to move back to the downside…

Good trading
Ian Copsey  






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