Friday, February 8, 2019

NOW FOR SOME CORRECTIVE DEVELOPMENT

I was surprised by the deeper decline in EURUSD. When I looked at that decline I realised that we have been seeing a 3-wave decline to form a Wave -i-. Indeed, GBPUSD also confirmed the same. These two pairs formed an initial Wave a and therefore we should see losses in the early stages but then see a break above yesterday’s Wave a rally. 

USDCHF has not formed a Wave [c]/[v] yet but we’re looking at a 3-wave rally to complete the (navy) Wave [a]/[i]. Equally, USDJPY needs one more new high to complete a Wave -i-. So we’ll “allow” these two to find their highs to then track back in a correction.

In EURJPY, we saw a break below a low but that then required me to work out what had happened. Basically, from the (blue) Wave b, the rally was a single 5-wave rally to 125.96 but with a deep Wave b/iii. We could see some swings with EURUSD rallying and USDJPY declining. This will not be an easy outlook.

As for AUDUSD, it has seen a 5-wave decline – although there may be a minor blip lower. However, overall, we should be heading back higher. Whether it breaks above 0.7296 is still uncertain.

Have a great weekend
Ian Copsey  






No comments:

Post a Comment