Wednesday, July 27, 2011

The Dollar has resumed losses but a little earlier than expected…

Well, I didn’t get the minor deepening of the Dollar bullish correction and the larger losses resumed directly. Overall I am quite satisfied as that has been the expected eventual outcome. However, it does bring with it a slightly different end target in several cases.

Base line is that we should see losses extend today as well but with deeper targets but once this drop has reached the final targets then I’d expect a sharp turn round in the Dollar’s fortunes for a while. Any break above 1.4696 EURUSD will increase the risk of reversal and we can observe other similar targets also in the other currency pairs.

In particular the Aussie looks like extending quite strongly although I am also aware of the divergences sitting there.

There is little more to be said except be open to further Dollar losses for now and I suspect there’ll be some decent follow-through today – nothing exceptional as there needs to be another correction before the final push to the expected Dollar lows…

Good luck
Ian Copsey

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