Wednesday, October 10, 2018

DOLLAR LOSSES TODAY

Well, it seems the development wasn’t quite so complicated. Basically, we are looking down the last legs of the Dollar losses and perhaps we could even complete the losses. If not - then into tomorrow. In EURUSD, as mentioned yesterday, had the potential for an expanded flat. Yesterday’s low was just a few pips from the normal expansion level. Therefore, we know within ranges, where the cap will be. Equally, we have GBPUSD also pointing higher.

What’s more, USDCHF managed to complete the rally that was ongoing and that needs a pullback – but this will be a relatively shallow pullback due to the depth of the Wave (b)/(iii). At the same time, USDJPY has taken the option of extending a second zigzag. 

If there is one issue, then it’s in GBPUSD that appears to need a comparatively stronger follow-through. Perhaps this may not quite reach its target and if so, we’re likely to complete it tomorrow.

This should provide a firmer rally in AUDUSD to then see a reversal – but perhaps this could have the same issue as in GBPUSD that we may have to wait for tomorrow. 

As for EURUSD, I have a feeling it’s going to messy due to the bullish EURUSD and bearish USDJPY. It may even trigger an initial move above 130.23 before losses resume… However, just take care in case there’s a horrid consolidation.

Good trading
Ian Copsey  






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