Tuesday, June 5, 2018

DOLLAR DOWNSIDE DONE AND DUSTED

Yesterday completed the pullbacks in GBPUSD and EURUSD. Long live the Dollar – well, for some more months… Basically, we should now be looking for the Dollar upside to develop. Already, USDJPY and USDCHF have already completed the early stages of the next rally. This should see GBPUSD forming a Wave i later in the day while EURUSD needs to complete a 3-wave decline in a Wave v. This tends to suggest that we’ll likely see some range trading/correction so the risk of strong moves is rather unlikely. However, at this point, we should see the Dollar looking for gains but with swings.

Therefore, overall, we are looking at a Dollar bullish outlook through the 4-majors over today and probably tomorrow. 

I feel we have seen the top of EURJPY although we’ll have to manage possible sideways moves at times but overall we should see losses. Having said that, as I noted above, EURUSD doesn’t look like a developing in a strong decline while USDJPY really needs to get going on the upside. This tends to suggest a rather fractious development and thus the need for care.

Finally, the Aussie broke higher. That came as a shock but when looking at the final stages of the losses, the Wave -v- was a mere 9.35%... That’s just one of the weirdest and probably the most shallow Wave -v- I have ever encountered… From there we have see a double zigzag… will we see a triple three or just losses?

Good trading
Ian Copsey  






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