Monday, June 4, 2018

STILL NOT QUITE DONE ON THE DOLLAR DOWNSIDE

However, there’s only a little more to go. Well, lets just say that GBPUSD, after a rather lethargic decline, it suddenly rose from the grave to make a new high. Meanwhile, EURUSD shunned the upside on Friday but hasn’t yet managed to confirm the high. Maybe it will follow GBPUSD but there’s no absolute outcome because of the option of a deep (higher wave degree) Wave (b)/(v). 

USDJPY and USDCHF also appear to have options right at the start. I would say that USDJPY will likely see an initial pullback lower and then resume gains while USDCHF could either see losses as in USDJPY but may make a minor corrective high first before losses. 

All of this tends to suggest the potential for relatively tight ranges over today. However, once EURUSD and GBPUSD have completed their moves we know what’s going to come next…

The Aussie returned to the downside but only to complete a 5-wave decline. There’s a little bit of room above Friday’s end-of-day high at 0.7573 but not too much. Whether it sees immediate losses or a pullback higher first is the puzzle.

As for EURJPY, we saw further gains. I can’t say it’s not a Wave -iv- but I took a longer look into the losses and feel that we are more likely to have seen the (purple) Wave -a- at 124.62. This tends to make sense because it was getting too high (although not breaking the Wave -iv- limit). However, it actually tends to suggest a pullback lower and then a final rally before deeper losses…

Have a profitable week
Ian Copsey  






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