It has swung me back to a more cautious approach and this does appear to be more of a trading range approach. The most difficult thing about this type of structure is the relative erratic and uncertain nature of the internal structures. Therefore, if we begin to see a deeper pullback to yesterday’s moves I’d recommend taking a lot of care and to take profits timely.
If I have any broad brush stroke observations then I do still see the additional follow-through in EURUSD and USDCHF which I had anticipated yesterday. While the slightly deeper pullbacks in these two pairs was a bit frustrating it does tend to lend to the idea that we’re going to see this type of trading continue.
While GBPUSD and USDJPY also rallied well I am reluctant to get too overly bullish at this stage. Certainly GBPUSD requires a correction and this could still retain a bullish structure. However, the JPY crosses seem correlated from the point of view these too appear to require a reversal lower within the larger range. AUDUSD is the same.
If there is any currency pair I feel could provoke new extremes it is USDCAD. My very bullish view was swept away with that drop and while today should see a pullback this does seem destined for the original targets I had been suggesting 7-10 days ago… probably around 0.9830-65… However, wait for the pullback higher first…
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 (+0 pips).
Good luck
Ian Copsey
For MT4 users
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