Monday, May 21, 2018


Having escaped the ranges in EURUSD and GBPUSD over the past two days, seeing some modestly decent gains in the Dollar, we’re now back in the same situation after the Europeans losses. It’s a bit like déjà vu. It therefore could see a repetition of the last few days. To be honest, there isn’t a particularly deep pullback so we may just see Europe and North America get to push the Dollar a bit higher later in the day. The only concern I have is more in USDJPY. We have seen a modest pullback but the Wave iv needs to be deeper. Of course, we could just see a deep Wave b/v so we’ll have to be alert to the alternatives. At some point, we’re going to get a stronger rally in the Dollar but whether it takes modest strides or stronger is something to consider also. 

However, coming back to today’s development, well, it actually looks like it will take the template of the past week. 

USDCHF… what a rotter… We had seen a double zigzag but with the general Dollar bullishness, I took the high road but the little blighter went sideways and then lower. I think we may have found the low but it’s not a particularly clear structure. Allow for a margin below Friday’s low… Once we have confirmed the triple three we should have a quorum in terms of Dollar bullishness. 

The Aussie looks set to go lower… EURJPY has seen a pullback. With the USDJPY alternatives and, most likely EURUSD early swings we could see some later swings too… 

Have a profitable week
Ian Copsey  

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