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HARMONIC ELLIOTT WAVE

Wednesday, October 12, 2011

Inconclusive


It was rather strange going through the analysis this morning. I had expectations of being Dollar bearish and there were some signs but perhaps not enough. EURUSD stalled perfectly in yesterday’s highlight support area. I can even see a constructive rally from that low that tended to support my Dollar bearish expectations. But then I looked at USDCHF… even GBPUSD and AUDUSD but somehow was left unconvinced… It has left me feeling somewhat mixed, possibly even lackluster with the complete lack of any directional bias.

That fine line between bullish & bearish therefore remains, although the impact of stepping too far over onto one side does seem to imply totally opposing implications… The same appears to be the case in U.S. equities – one step too far in either direction will imply new highs and an eventual retest of the 2007 highs… or the opposite, a drop to below the 2009 lows… But perhaps that’s the conundrum of which the market is silently aware…

It will be beneficial to understand that balance and wait for one side or the other to finally makes its move…

Therefore I think this is not a day to force a position but to allow the possibility of the market losing its balance to provide us with the final outcome. If I have any preference it is actually for the Dollar to resume its rally. I say that due to the stronger bearish structure and ratios. However, it’s probably still best to let the market demonstrate its final decision. Either way there’ll be plenty of points on the board to be taken.

Good luck
Ian Copsey

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