Thursday, January 4, 2018

YESTERDAY PROVIDED THE LAUNCH PAD

I was really quite satisfied with yesterday’s development – perhaps USDJPY being an exception. I hadn’t mentioned the Price Equilibrium Clouds for some time but yesterday I saw the potential for reversals and throughout the majors the Dollar gains pushed above the 4-hour Price Equilibrium Clouds. This could still see some minor pullbacks but overall the outcome appears to suggest a follow-through later in the day.

On USDJPY, I was expecting a minor new low but when I awoke and saw a slightly higher than expected really, I realised that what we had seen was a Wave [ii] that will then allow a move towards the eventual target.

Thus, today should overall provide us with some solid gains across the Dollar-currency pairs – with the inclusion of the Aussie that spent yesterday wandering around the outback, probably drunk, and not knowing where north or south actually were… It should now manage to resume the downside.

The odd one out is EURJPY – which is hardly a surprise – but has confirmed the final high at 135.62 and is making its way lower but will battle with the emergence of a stronger USDJPY and a weaker EURUSD. This could provide some difficulties but overall the final outcome should be bearish.

Good trading
Ian Copsey  







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