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HARMONIC ELLIOTT WAVE

Thursday, July 14, 2011

We should see Euro losses resume today…

Isn’t it fascinating that the world’s reserve currency and the currency that had dreams of possibly sharing that mantle if anything went wrong are both under siege. Yesterday it was basically the Dollar’s turn to take the brunt of the market’s distaste for risk. However, although the Euro has been a little stronger than expected I expect that to resume its steep downward trajectory today…

From what I can see for today the other currencies look like they’re going to have a more rough and tumble day, possibly extending the moves from yesterday but then suffering corrections. I can’t see the underlying distaste of holding anything Dollar related changing for the moment so the corrections should be viewed as selling opportunities, the trick obviously to pick those tops…

USDJPY had a much duller day and I have a feeling that it will continue subdued for today and possibly into tomorrow as well. That still has much further to go on the downside, as should EURJPY. The cross has a little more upside potential but before long it’s going to look vulnerable again. Once USDJPY joins EURUSD on the downside the cross should take some thumping losses that should be targeting somewhere close to the 105.42 low again…

AUDUSD… I read that completely wrong… it too seems to have benefited from the Dollar’s leprosy status. USDCAD looks a bit like a damp squid also…

Good luck
Ian Copsey

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