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HARMONIC ELLIOTT WAVE

Tuesday, March 23, 2010

The stronger evidence appears to suggest Dollar strength – but only after a pullback

Please note that the report will take the Easter break from Friday 2nd April to Wednesday 7th April


USDCHF broke above 1.0645 and EURUSD below 1.3487 which combined appears to suggest we should see Dollar weakness develop over the coming weeks. However, in the immediate outlook there does seem to be risk of a pullback. Now, this is going to test the resilience of USDCHF to avoid any dip below 1.0506 as I feel the pullback in EURUSD should (ideally) be quite firm…

The only concern I have is that GBPUSD still looks weak. It can make a push lower independently but it is something to watch in case it drags the others with it. I doubt it as assuming I’m correct in GBPUSD, then it will be its turn to correct higher. Again, assuming this is the case it does possibly suggest that we could see some choppy consolidation in the Europeans over the coming couple of days.

The JPY crosses are pulling back higher after their losses yesterday but I can’t see this being sustainable. The greater risk does still seem to be lower and thus we should be aware of the possibility that USDJPY will begin to turn lower before too long. I doubt it will be today and if the past 10 days has any influence then it could be another dull day.

AUDUSD and AUDJPY seem to be correcting higher but once this is complete we could see further losses. USDCAD is mixed and probably still has some deeper correction before its next leg lower…

Today’s free analysis is for AUDJPY and can be found on http://www.fx-forecaster.com/DailyForecast.html along with yesterday’s Trader Package Review & Trade Set up report (+75 pips).

Good luck
Ian Copsey

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

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