Wednesday, January 3, 2018

STILL BITS AND PIECES TO SORT OUT

Yesterday saw modestly deeper losses in the Dollar but we’re not far off track. There are some tricky elements left over from yesterday’s moves. I’d like to think that we have seen EURUSD topped out (but there does remain the potential for a minor new high) and USDCHF appears to have found its low but needs confirmation. However, USDJPY still needs a new low – and GBPUSD appears to have topped out but I do have some reservations. Therefore, I’d prefer to take a cautious approach, basically looking for either the foundations for a Dollar bullish reversal or the potential for a few pairs to make new Dollar lows – USDJPY for sure and GBPUSD that has been acting rather surreptitiously.

Therefore, I’d suggest taking short-term trades with limited profit targets. From there we should be able to work out how the foundation waves can develop. Once this process has developed we should see the Dollar become a little more robust.

Even the Aussie managed to squeeze a few new points on the upside but it has both 4-hour and hourly bearish divergences along with Price Equilibrium Clouds beginning to attack the downside.

As for EURJPY, well I suspect that with USDJPY still needing a drop that we may have seen the final low. However, the safer bet will be a break below the 134.93 low…

Good trading
Ian Copsey  







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