Thursday, April 12, 2018

A DAY OF TWISTS AND TURNS

We’ve seen the Dollar downside begin to wilt. I can’t rule out a minor new low – and in fact, I’d rather like to see that happen – basically for EURJPY. If I am correct in seeing a new high in the cross it will tend to confirm the expanded flat from the 128.93 low. Indeed, it looks like EURUSD will need one more rally and it may be accompanied by USDJPY. Once we have seen that – or just direct losses – then we will see Dollar gains. 

This tends to suggest a day in two halves but without excessive development. Once the Dollar has tested those extremes watch for stronger Dollar bullish divergences. We do have a decent hourly bearish divergence in EURUSD but also we have seen a potential Double Top in GBPUSD. 

Once we have established the Dollar upside I suspect we’ll see firmer follow-through. 

As for the downside up currency (aka AUDUSD), I’ve been fairly flat on this pair. However, with the firmer gains we saw once again yesterday, I realised the earlier error I made – basically one of those deep Wave b’s of Wave iii. Therefore, we should soon see the Aussie begin to move back lower.

Good trading
Ian Copsey  






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