Now we can plan the route to the 1.52 and 0.9932 targets…

With tomorrow being Veterans Day Holiday in the U.S. the next report will be on Thursday

There was no way the Dollar could spend yet another day wondering what to do… The break lower is in line with the preference I always had – not that I didn’t begin to doubt on several occasions – and now generates targets at 1.5200-06 EURUSD and around 0.9917-32 USDCHF. Of course, this is unlikely to be a straight line and at some point I anticipate a fairly sizeable correction and probably starting later today or tomorrow.

Actually, today should start with a correction also but I don’t think this is going to be too deep. Just considering EURUSD we have a “choice” of two areas. The one I am looking at is around 1.4951 and if this holds then we can probably expect a rally to 1.5061-69 only and then the larger pullback. If today’s pullback becomes deeper – to around 1.4906-26 then I’d have to consider the risk that this is the larger pullback occurring sooner. If so then the next rally should end up at the 1.52 target.

That really highlights the potential routes to target so be aware of these and how to take advantage… For the moment I’m sticking with a 1.4951 base and 1.5069 target.

One currency to watch carefully today is USDJPY. This hardly set the world on fire with the rally to 90.25… It is struggling and really needs to pick up some confidence to push above 90.25 to avoid what could be a sharp and nasty drop into the void. In terms of the larger picture I have always preferred a second move higher and if it can manage a push above 90.25 then I’ll be looking out for 90.84 initially and potentially 91.61. This would imply a minimum upside target at 92.89.

It’s a break below 89.61 that now concerns. If this occurs then don’t be surprised to see a sharp drop to 88.00 again. It should cause a pullback but then the next target is down around the 86.93-87.10 area. However, while it can cause a correction the larger implication is actually much lower – at 85.73 and 84.39. I still prefer the upside but it’s worth noting the implication of the alternative if I am proven wrong…

Today’s free analysis is for EURUSD and can be found on http://www.fx-forecaster.com/DailyForecast.html along with Friday’s trade set ups (+155 pips) and the new review of the support & resistance levels issued in the daily report.

Good luck
Ian Copsey

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