Friday, February 2, 2018

THE NFP WILL PROVOKE DOLLAR GAINS

I have been far too bullish on the Dollar this week. Initially, this was down to what I thought was a structure that would have a limited pullback. Both EURUSD and GBPUSD had this issue but in the end, I had to concede to a 5-wave decline in a rather wide swinging move. Thus, we still have the 1.2837 and 1.4344 peaks that could even be approached. These should not be breached.

But it’s NFP day and what does that do? Not a lot for at least 14 hours because the market will play a waiting game – although still completing the missing legs that need to be put in place.

The other two majors provided opposites. USDJPY rallied modestly and USDCHF broke below the 0.9288 low. There’s nowt as queer as folk… However, the basis for gains has already been set.

EURJPY broke above 136.63 but only due to an overlap and there are limited gains to be seen. As for the Aussie, instead of the final 5-wave move, the new corrective low now requires a 3-wave rally…

These two pairs should have limited bullish life for now…

Have a great weekend
Ian Copsey  







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