Monday, July 16, 2018

LIMITED DOLLAR PULLBACK THEN BACK TO THE UPSIDE

Steady as she blows… Clearly, the North Americans saw that the Europeans really didn’t want to extend the Dollar upside and basically they decided to squeeze the market. However, this pullback is now pretty close to a reversal for the Asian session to drift as if in a cloud. We still need some minor Dollar losses in the early stages but it won’t take too long before the Dollar to re-track its losses and revert back to the Dollar upside.

I suspect USDJPY will be rather lackadaisical today although the counter-argument is that EURJPY needs further gains. We have seen the rising channel low hold but can it make a new high? The balance between EURUSD and USDJPY is rather fragile at this stage but – at some point – we shall need a new high. We may even see the rising channel break for a pullback and then a higher target. This suggests that we should wait and watch whether it breaks above the current high – or below the rising channel. 

Otherwise, the main pairs are pretty much balanced and in broad correlation.

Have a profitable week
Ian Copsey  






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