Wednesday, May 16, 2018

UP A BIT, DOWN A BIT…

It’s never easy when you’re faced with a shallow Wave (ii) – you know, something like 14.6%. Even I was a little concerned but frankly the structure just couldn’t absorb a break above 1.3617 in GBPUSD. So, the Dollar has taken a jolly jaunt to the upside. Most likely we’ll see a pullback lower over the Asian session and into the European, but at some point we’ll need the Dollar to do what it did yesterday… Perhaps the risk may be a complex consolidation that will keep us moving sideways. 

USDJPY hasn’t completed the current rally from the 109.15 low but doesn’t have much more to go before lurching back lower – may be even an expanded flat. 

EURUSD saw some decent losses – but just in the lower degree – and that could see a deeper pullback. That should see USDCHF complete a triple three. Once that’s done and dusted we can get back to the Dollar upside. GBPUSD could follow the same route but the upside has a shallower cap so take care.

Equally, the Aussie has done one of its sharp losses that now requires a pullback before getting back to below yesterday’s low. 

As for the Cross – EURJPY – I suspect a rather limited range for the most part…

Good trading
Ian Copsey  






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