Monday, July 23, 2018


It came as a shock to not see Dollar gains on Friday. So clearly I hadn’t quite caught the structure but the clue here is in EURUSD. The rush higher was the lest leg of an expanded flat. It just needs one more push higher before a reversal. That should provide the next low in USDJPY to complete a zigzag and thus for a move back higher. Whether that means it will then just rally back above 113.21 - and allow for an expanded flat - perhaps.

USDCHF was another pair that I had to adjust but is now close to a double zigzag. Then the next puzzle is whether we see the trend develop or a final zigzag to form a triple three. 

AUDUSD is a little weird but frankly needs a new high - or just direct losses…

As for the Cross, EURJPY is not in an easy outlook. Perhaps a risk of an expanded flat - but if not a pullback and direct losses when EURUSD tops out. Even then, EURUSD needs to form the foundation waves before a stronger move higher in the Dollar.

Have a profitable week
Ian Copsey

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