Pages

HARMONIC ELLIOTT WAVE

Monday, January 24, 2011

The Dollar will bottom out today…

Friday went broadly to plan… We have EURUSD, USDCHF and the Dollar Index all pointing to the same event – a larger Dollar bottom due later today.

The first part of the day should be taken up with a correction to this morning’s Dollar dip on open. That should open the way for the final drop, my guess being in the European afternoon when North America joins the fray. Dollar bullish divergences are developing across the 4 majors which encourages. The only pair I have problems with is GBPUSD. My structure is still very bullish. It really is bullish… In fact, it’s so bullish I really have doubts about it. However, I mention the situation just in case some catalyst develops… you know, something like the cleaner in 10 Downing Street finding £100bn in cash under the Prime Minister’s mattress…

The other pair where I have some doubts is USDJPY. I prefer bullish but it’s the current structure that is rather vague. I’d like to think that we’ve seen the low already but that seems a bit tight. Take care in this one. Obviously the clues could come in EURJPY … However, even this I can’t see as looking directly bullish. A correction is due and it depends more on how long it can remain supported before a correction. Will it be fueled by a drop in USDJPY or EURUSD? However, overall I still feel the cross will eventually pick up on the back of a stronger USDJPY compared to EURUSD losses…

Unless AUDUSD makes a stronger rally now it’ll succumb to the downside… USDCAD’s failure to break above 1.0030 signals further losses…

Thus, the outlook for today should be early Dollar strength in a correction, a final decline – watch the 77.70 level in the Dollar Index – before a period of Dollar strength that should last 2-3 weeks at least I feel…

Today’s free analysis is for EURUSD and can be found on http://www.fx-forecaster.com/DailyForecast.html along with Friday’s Trader Package Review & Trade Set up report. (+110 pips)

Have a profitable week
Ian Copsey

Early birds’ discount available for the first Harmonic Elliott Wave webinars available

No comments:

Post a Comment