Friday, August 26, 2011

The end of a long week…

Well, it certainly doesn’t look like the consolidation is going to end today… In fact, maybe it’s best just to take the day off and make it a long weekend…

It was basically more of the same stuff yesterday in the game of guessing the next corrective structure within the intermediate correction within the larger correction. However, I do still think the larger structure is Dollar bearish and thus it is just a matter of time before we are finally released from the current corrective straight jacket.

There are now probably one – well two – stronger structures, those being in USDJPY and EURJPY. As I pointed out in yesterday’s report, the 1 point break of the 76.47 low and stronger reversal in USDJPY held a warning that we could well see gains, and up this went. There is still a little way to go but not so far and in the absence of EURUSD fueling the rally in the cross USDJPY has stepped in to maintain this. The rally in the cross has been a bit ragged too, but recognizable and this should extend further today to generate a deeper correction.

I still maintain the cross may well be a good indictor of when EURUSD may resume its rally. I am quite bullish for the cross for a while longer but I’m still not certain that USDJPY can carry it all the way. It will need help from a firmer EURUSD at some point – probably after the correction following today’s anticipated rally in EURJPY. I can’t get overly bullish for USDJPY though and not enough for the cross to reach 114.17 again. Thus, over the coming days watch the balance of this ménage a trois for signs of being caught in the act…

For today… have a good break.

Should you wish to join me on a webinar introducing Harmonic Elliott Wave, the basis for the adjustment in the impulsive wave structure, and a few examples of the remarkable forecasting capabilities I shall be starting at 17:00 EDT. There are limited spaces so please book in advance on this link: Login early as you will need to download the software.

Have a great weekend
Ian Copsey


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