Thursday, February 1, 2018

FRUSTRATED BUT IT’LL HAPPEN…

Goodness gracious… what a pain in the backside. Are we really going to remain in a consolidation to await tomorrow’s NFP? The Dollar will rally – but it’s just a matter of time.

I suspect that USDJPY will make a move higher. It has broken above the 4-hour Price Equilibrium Cloud but does need to confirm a clear break above. Currently, it’s wavering, there is potential for a triangle, so best to wait for a break above 109.45.

The other three Majors are eyeing the potential to make a Dollar bullish break above their 4-hour Price Equilibrium Clouds (lower in EURUSD) but there’s still room for EURUSD and GBPUSD to hide first. USDCHF basically sat on the 0.9288 low and may even edge a to a new low. Such is the frailty of the Swiss cheese – but even if it does, we have some hourly & 4-hour bullish divergences developing so I’d expect to see a subsequent move higher.

The Aussie didn’t manage to form a triangle but, instead, a new corrective low so we’re basically back in the same position needing another rally…

The situation in EURJPY is rather flaky but frankly, I can’t see anything but a bearish outlook. It still has a limited buffer above the current price but we really need EURUSD to step up to the mark and perform its duties…

Good trading
Ian Copsey  







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