Monday, February 4, 2019

A CAUTIOUS START TO THE DAY – LATER DOLLAR GAINS

We’re still going through the motions within the lower degree development. Most likely we’ll see a pullback in the Dollar as the day/week begins. It shouldn’t be too deep but over the day we still have to look towards the Dollar upside. Indeed, there are a few of the pairs that are going through this process to form an initial 5-wave move – a Wave [a]. While we shall likely see that Wave [a] it will need a pullback higher to form a Wave [b] and later – probably over a day or two – we’ll finally get to the Wave [ii]. That’s when we should begin to be able to get an idea of the larger wave degree that will eventually see a much stronger Dollar move. Therefore, at this stage, it may be best to take profits when seen.

So, most likely, it looks, a cautious day rather like the last days of last week. Probably USDJPY will see a deep-ish pullback and this will trigger losses in EURJPY. However, it should be a slow decline due to USDJPY likely seeing losses from the start – but just for a pullback. 

Equally, the Aussie has limited upside and firmer downside over the day.

Have a profitable week
Ian Copsey







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