Monday, December 3, 2018

EARLY DOLLAR PULLBACK LOWER AND LATER REVERSAL

Having written the headline, there are some variances. For the most part, the headline should be correct. I have EURUSD, GBPUSD and AUDUSD expecting a pullback higher from the start. USDJPY should see a push higher along with USDCHF. However, while USDJPY appears to be more bullish, USDCHF seems to require a minor new high and then a pullback lower. 

However, as the day develops the pullback lower in the Dollar, we should come to a point when we should see the resumption of the Dollar upside. Most likely the best template is to follow EURUSD due to the fact it will be forming a Wave b/iii. How deep? Modest - maybe mildly firm - but there is a limit. At the same time, we should see USDCHF pulling back lower before it can see a higher move. This should also see GBPUSD seeing a 5-wave rally and followed later by a reversal back to the downside. This will likely be the same in AUDUSD.

EURJPY should see a pullback higher having seen a 5-wave decline and that should see both EURUSD and – to a lesser degree USDJPY – providing a peak and later reversal…

Have a profitable week
Ian Copsey  






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