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HARMONIC ELLIOTT WAVE

Wednesday, May 25, 2011

That deep pullback didn’t thrill, but I still favor another Dollar rally…

It looked for a while that things were going to plan. The Dollar pulled back and hit my Dollar support levels, stalled and then pushed through. It hasn’t been by too much but enough to annoy, particularly in GBPUSD.

My feeling, particularly in EURUSD is that this is just a deeper pullback than normal, something similar to the recovery it made from 1.4047 but still made it back to the 1.4338 high. While I am basically on the lookout for a Dollar high I still feel there is something missing within this current move and either yesterday’s pullback is now complete or should manage only marginal new Dollar lows before the move resumes.

This tends to be the main underlying theme across the board, through USDCHF, USDJPY and GBPUSD. I would even add to that the U.S. equity indices which have performed since Monday almost exactly to plan.

Thus, I remain looking for new Dollar highs but also for these to potentially be the highest we see for some while…

Given the rather volatile nature of recent moves it does suggest a raised level of risk of being whipped out so take care.

Today’s free analysis is for GBPUSD and can be found on http://www.fx-forecaster.com/DailyForecast.html.

Good luck
Ian Copsey

HARMONIC ELLIOTT WAVE FORECASTS NOW AVAILABLE FOR U.S. INDICES

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