Tuesday, April 10, 2018

WHAT A STRANGE DAY THAT WAS…

Indeed, it was strange. Well, perhaps “unusual” is a more appropriate word. I’m referring to the deeper pullback in EURUSD. Friday’s high was the “normal” type of pullback in a Wave iv but the move up to 1.2330 was definitely an “anomaly” being so close to the 58.6% extreme at 1.2335. Along with that weirdness, USDJPY has seen the deeper pullback that I normally see in a Wave iv. Really, I wouldn’t want to see any break of 1.2335…

With those deeper pullbacks, GBPUSD and USDCHF managed quite deep pullbacks in their respective Wave b/iii’s. Throughout, it now suggests that yesterday’s outlook should now develop and with the addition of Dollar bullish divergences across all the four Majors.

We now have EURJPY rather elevated and with an hourly bearish divergence. As long as EURUSD doesn’t break the 58.6% retracement we should now begin to see deeper losses. Having said that the balance between USDJPY and EURUSD could initially see some ragged development before stronger losses. 

I still remain cautious in AUDUSD but suspect we’ll see the downside. This could end up as a triangle before any further deeper losses develop… 

Good trading
Ian Copsey  






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