Wednesday, May 23, 2018

RESET

Well, that wasn’t the day I expected – perhaps partly expected. USDJPY was always at risk of a deeper pullback, EURJPY had potential for a triangle – or a deeper pullback – and the Aussie did have the potential for a little higher. So, I’m basically comfortable with these pairs.

It was EURUSD and GBPUSD – even USDCHF (of which I wasn’t totally comfortable anyway) that caused a little ruckus. The two erstwhile buddies pushed higher than I had expected and that took me some while to work out what had happened. The answer was that both saw a mini Wave v but what appeared to be an ABC. Well, that was the bad news. 

BUT! The good news is that it has – I hope – we should now be seeing firmer gains in the Dollar. There could still be some hiccups along the way but the outlook I see suggests a decent move higher in the Dollar. The Asian session will likely see some corrections lower in the Dollar – not by too much – but by the European session we should hopefully see these Dollar gains I have suggested.

It should drag EURJPY lower – probably a stronger decline in EURUSD while USDJPY flaps about like it doesn’t really know what it really wants. Indeed, it should be slower over time due to the needs for several pullbacks on the way higher.

As for the Aussie, it crept a little higher but was always going to find a high – and did – so the downside should develop. However, we may see a sideways move around the 0.7440 – 60 area before deeper losses .

Good trading
Ian Copsey  






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