Monday, July 9, 2018

FRUSTRATED BUT I REMAIN DOLLAR BULLISH

Friday’s break above 1.1721 in EURUSD was not what I wanted but there was always the potential for a follow-through. I just couldn’t quite get the correct. The key issue now is that even GBPUSD broke higher and that mean an expanded flat. Indeed, it has broken above the 1.3315 high and should now make one more minor high before a reversal. We’re also very close to a high in EURUSD – in fact we may have seen the high on Friday, particularly with a solid bearish divergence. The odd one out appears to be USDCHF that appears to need a new low for a reversal higher – but this pair can generate mini-minor pullbacks in Wave iv and a minor blip to complete a low. As long as you place a stop by a decent margin, we should then find a quorum for the Dollar to (FINALLY) get itself back on the bullish road. For the final 4thmajor, USDJPY – well, given that the other pairs are just about to – or have seen their Dollar lows – ideally we should see it hold above 110.28… 

That just leaves AUDUSD to make a new high and then a reversal following its own expanded flat.

As for the cross, EURJPY has barely any room on the upside so it will need EURUSD to reverse more firmly relative to USDJPY. However, given the tight levels that need to hold, it’ll be prudent to make sure that key levels do not break on the downside…

Have a profitable week
Ian Copsey  






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