Wednesday, August 8, 2018

FIRMER DOLLAR GAINS

Yesterday was a rather mixed outlook. We did see limited Dollar losses in USDJPY, USDCHF and GBPUSD but the modestly deeper pullback in EURUSD was rather a surprise. Indeed, the deeper pullback in USDCHF was just 9 pips above the 0.9921 low. It’s even rallying as I write. Even if we had a deeper Wave (iv) – for which I allowed for – this really has very limited upside and more on the downside.

The bigger puzzle is in EURUSD. I had to make an adjustment but I doubt we’ll see a deep pullback. It may even have topped out already. However, we should allow for a modest pullback high – even if the other pairs are really looking to the Dollar upside. USDJPY may be a little different and may see some limited losses but overall today should continue to see the Dollar pushing higher.

When you look at the rush higher in AUDUSD there’s really very limited upside and most likely we are going to see a reversal of yesterday’s rally

Equally, there’s very little room on the upside in EURJPY after its deep pullback – currently a 76.4% pullback. Therefore, the odds will be most definitely on the downside…

Good trading
Ian Copsey  







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