Wednesday, June 27, 2018

WE STILL NEED A BEARISH DOLLAR

I had high hopes of finding the final low in the Dollar. Instead, in USDJPY in particular, we saw an expanded flat and in EURUSD an extremely deep Wave b/iii that stalled 0.00002 from the break level. This allowed GBPUSD to sink into a bubble bath ready to see the next rally. 

So, as long as that EURUSD low doesn’t break down, we should be heading lower in the Dollar today. Maybe we’ll complete the move – but it may drag on into tomorrow morning. This should allow USDCHF to make another 5-wave move lower to complete the triple three while the Aussie needs a 3-wave rally. Of course, the Aussie can be a rather tricky pair. It tends to enjoy generating expanded flats just for the fun of it. However, once we’ve sorted out the next zigzag, we should begin to look back to the downside.

As for the EURJPY cross, I’d still recommend a rather neutral outlook. We have a bullish EURUSD and bearish USDJPY. It doesn’t really provide any confidence of an impulsive move today… Best remain neutral.

Good trading
Ian Copsey  







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