Tuesday, May 22, 2018

ROLLER COASTER RIDE

Currently we seem to be in a roller coaster ride and we’re coming to the high of another swell. Thus, expect losses over the day – maybe more than a day – to see the losses that we need to push back to newer lows. There will be a third swell at some point so there’s going to be some rough seas over the coming week. Of course, on each segment lower, we’ll see lower lows and deep pullbacks. 

As far as I can see, we’re pretty close to the pullback in EURUSD while GBPUSD may have seen its current high but I wouldn’t rule out a minor new high above 1.3440 only to see a reversal back lower. I suspect that we have seen the low in USDCHF at 0.9950 and therefore it can also make better gains.

That’s covered the Europeans. In USDJPY we still need just a little more on the downside before it can push back above yesterday’s high. Once it completes the rally from – what should be today’s lower low – we need a target that will match a (navy) Wave -iii- target. More swings to come…

The Aussie decided that it wasn’t satisfied with the Wave (iv) high and has seen a higher Wave (iv) – well, most likely but there is a risk of a minor new high before it returns lower once more.

EURJPY? Note that we are likely to see this pair reverse lower with USDJPY providing some early downside – but the stronger impact should come from EURUSD. This does tend to suggest the potential for a triangle…

Good trading
Ian Copsey  






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