Monday, May 7, 2018

EARLY CONSOLIDATION BEFORE DOLLAR LOSSES

Gee, what a lethargic day we had on Friday. However, we have seen the final stages to complete the Dollar upside – so far…  In saying that, there are two pairs that have completed 5-wave moves (USDJPY and AUDUSD) while EURUSD, USDCHF and GBPUSD still need to see a pullback and later reversal. We’ll have to cautious with these three. The (normal) expectation for EURUSD and GBPUSD is a deeper pullback although the problem that could develop is that because the Wave (ii)’s are rather shallow. In that case, we could see alternation in a different way – perhaps a deep Wave (b)/(v). In USDCHF, there is a clear picture of a deeper pullback before another rally. This tends to suggest a rather lacklustre development. However, once these three pairs have completed their structures the risk will be for a deeper correction…

Therefore, it tends to suggest a rather slow week as far as I can see. If there is any pair that could go solo, then it’s AUDUSD that should be looking for a rally.

As for EURJPY, I suspect a pullback higher and later a new low. From there we should see stronger gains. However, the early part of the week could be a little choppy.

Have a profitable week
Ian Copsey  







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