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HARMONIC ELLIOTT WAVE

Thursday, February 4, 2010

It looks like this Dollar correction is going to last longer…

Those Dollar supports… well, they didn’t last long… In some ways I am more comfortable with the developments as they tend to fit in better with some wave ratios and while the Dollar high has not yet been totally defined there is still room for another round of losses. From the start of trading this morning I feel the correction from yesterday’s push lower are complete (or very, very close to completion) and thus the coming day and into tomorrow should see some further corrective losses.

And while GBPUSD also looks pretty bearish right now I feel there is a strong chance of a reversal back higher to those resistance levels seen yesterday. By next week we should be back in Dollar bullish mode.

However, it seems as if USDJPY has surprised and is already in bullish mode and I feel that early trading could well see follow-through. I suspect it will not be sustainable today but the outlook could well get stronger either tomorrow or into next week. The only caveat I’ll put on that is that any drop below 90.70 would see a recycling of the correction back to 90.87-98…

That in itself has implications for the JPY crosses but looking at these independently there does seem some risk of sideways consolidation. These will take some managing and probably better left untouched until a stronger signal is generated.

Equally, while I have been bullish on USDCAD and it bounced almost perfectly from support yesterday, we do need a rapid follow-through higher or it will end in tears on a break below yesterday’s lows…

Today’s free analysis is for EURUSD and can be found on
http://www.fx-forecaster.com/DailyForecast.html along with yesterday’s Trader Package Review & trade Set up report (+100 pips).

Good luck
Ian Copsey

NEW!! FX-forecaster Trader Package now available at €20.00 pm
For MT4 users

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