Monday, July 2, 2018

DOLLAR STILL SEEMS TO NEED LOSSES

Basically, everything appears to be in order despite the broad swings we have been seeing. One development from Friday was the break above the 110.67 level that broke the downside – although the 110.85 high did not conform to the ratio structure. However, having seen the break higher I have to concede to an “outlier”. We seem to have a limited downside but having seen a Wave a/iii there is the risk of a complex correction. 

Otherwise, EURUSD and USDCHF should maintain the Dollar bearish outlook but we’re closer to a final reversal that should provide a firmer directional wave. This is going to need some patience to allow the development to … errr… develop.

In GBPUSD, I looked back in my charts and noted that on the 21stJune we registered a 3-wave rally. We therefore have the duality of a potential limited pullback or an expanded flat. Thus take note of the break level that will provide the expansion.

The Aussie has to complete its expanded flat. 

EURJPY should see EURUSD provide the main boost for the rally. However, whether EURUSD can take on the burden for the rally by itself is a bit of a stretch. Don’t rule out the possibility of USDJPY providing support also…

Have a profitable week
Ian Copsey  






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