Wednesday, September 8, 2010

Probably a bit more of the same today…

EURUSD down… USDJPY down… and EURJPY had no chance of making a minor new high… While some of the supports on the way lower were helpful the decline in EURUSD in particular was far more persistent than expected and really does suggest we’re on our way lower to eventually test closer to the 1.1879 low. However, a pullback is due before long and it would be quite normal for the pace of descent to slow considerably in favor of a more choppy decline. The same can be said of EURJPY which had a more direct decline than I had hoped for but equally looks destined for new lows.

USDJPY also broke to a minor new low and should continue the general decline, perhaps in a less direct manner than EURUSD, but I remain with the belief that it will not be an excessive decline but should then spark a correction higher.

After having led the decline compared to EURUSD, GBPUSD had a more sedate day refusing to jump on the back of the continental decline to keep the general Dollar strength more subdued. It holds a risk of seeing just a little more but then a recovery. I’ll detail the key levels in the report but until the critical support breaks there is every risk of a recycling of the recent correction. Overall I am quite satisfied with the Euro outstripping GBPUSD as I still see that it will only be the Euro that will ultimately make new lows against the Dollar. Thus, expect GBPUSD to remain more erratic and choppy over the coming month or two.

USDCHF had a day’s break holding in a sideways trading range. I remain bearish here but not excessively.

AUDUSD remains bearish and USDCAD appears to be in a correction higher. Overall I feel this still has further lows to come.

Today’s free analysis is for USDJPY and can be found on along with yesterday’s Trader Package Review & Trade Set up report. (+55 pips)

Good luck.
Ian Copsey

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

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