Monday, May 28, 2018

DOLLAR GAINS OVER THE DAY

Friday was a mixed old bag. USDJPY decided to take a break and saw losses – perhaps just to try and be like EURUSD and GBPUSD that managed quite a decently modest decline to new lows. In the meantime, USDCHF initially rallied and then saw a dip lower. So much so for correlation between the Majors… Maybe I should coin the development as dis-correlation. 

However, I’m pretty much now in the Dollar bullish mode overall. Of course, early hours in Asia are always likely to develop some swings - and even roundabouts. Seeing EURUSD losing out from the open while USDJPY just rushed out of the blocks to look to the Dollar upside. I’d like to think that Friday’s low in USDCHF was the limit and therefore should begin to see a rally developing again – and as I write, we are seeing Dollar gains in the Swissie. It’s all rather a weird range of reactions in the early hours but overall we should see the majors converge to move the Dollar higher over the day.

Down at the bottom of the world, AUDUSD should hopefully see a pullback higher before losses resume. 

As for the spike higher this morning in EURJPY, is now developing a correction higher. Thus, watch for bearish reversal indications. I still harbour concerns in case we see a 3-wave rally that could then trigger a complex correction. However, we’re going to need some care in this development.

Have a profitable week
Ian Copsey  






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