Friday, May 18, 2018

UP A BIT, UP A BIT MORE… AND FOLLOW-THROUGH

I can’t say that we saw a particularly firm Dollar. In USDJPY it most certainly took the opportunity to push higher again. However, the Europeans basically took a day off and took things slowly. There was always the potential for gains – just it was too slow. Therefore, today should see these three now begin to push higher – Dollar-wise. 

That leaves the other Major – in USDJPY – rather puzzling. It has seen a decent rally but as far as I can see, we can either see a direct follow-through higher – but be aware of any deep pullback. That’s not such a bad thing because we need EURJPY to move lower… That doesn’t mean to say there is a definite cap. It may just push a bit higher but I cannot conceive a stronger rally in the cross.

Even AUDUSD pushed higher. I was wondering whether it would reverse lower yesterday but it managed quite a deep pullback. This should now follow the European outlook for Dollar gains once more. 

So, overall it seems that the Europeans and dahn-unders should be looking for Dollar gains today. Just take care with USDJPY…

Have a great weekend
Ian Copsey  






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