Monday, January 8, 2018

HEADING HIGHER IN THE DOLLAR TODAY

Well, for the most part… There is a doubt in the upside down currency - down under - that may well extend gains. However, this should be the penultimate leg of the pullback as far as I can see. Therefore, the risk is still basically higher within the rising channel and currently without a firm bearish outlook.

Otherwise, we’ve started the day with a mild new Dollar (bearish) pullback but I really can’t see this as particularly deep. Across the majors, all appear to be looking for the Dollar upside – and aided by the veritable 4-hour Price Equilibrium Clouds that – at this point – are still providing a base for further gains. Having said that, we should see a limited push higher in the Dollar – basically developing the lower degree foundation waves that will later build up for a stronger move.

As for the Cross – EURJPY – well, this still has an initially limited downside and approaching the (rising) 4-hour Price Equilibrium Cloud. This tends to suggest that the balance between USDJPY and EURUSD will be relatively limited.

Overall, it should be a Dollar bullish day but without hin a great deal of “oomph…”

Have a profitable week
Ian Copsey  







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