Pages

HARMONIC ELLIOTT WAVE

Wednesday, February 29, 2012

Can it? Can’t it? Surely not… but it looks like it can…


PLEASE NOTE THAT OVER THE NEXT 1-2 MONTHS I SHALL BE CLOSING THIS BLOG IN FAVOR OF http://harmonicelliottwave.blogspot.com/ IN LINE WITH THE HARMONIC ELLIOTT WAVE BRANDING. PLEASE FEEL FREE TO CONNECT DIRECTLY WITH THE NEW BLOG ON WHICH I SHALL POST ADDITIONAL INFORMATION.




Yesterday I declared a period of consolidation. This morning, after dragging myself out of bed, I looked at the charts and wondered… USDJPY met a solid support, EURUSD has done enough to satisfy a pullback but it was GBPUSD that struck me the most, not so much because of the depth but more the manner of the decline that, with it surpassing the 1.5901 high, makes it difficult to slot into a complex correction. The structure in EURUSD is different but the surge back towards the 1.3486 high has a similar impact – I can’t see this as implying a complex correction…

The only currency pair that didn’t generate the same doubts was USDCHF. Here I find the pullback way too shallow and this was one of the factors for me calling the longer lasting correction yesterday. I still find it difficult to slot in with the others but this pair is one I’d rather not get too tied up with a view as it has a different character footprint to the others.

So, let’s just say that I feel we should consider a direct resumption of the bearish Dollar-Europe trend and be prepared to jump on its back. What is more alarming is the implication in EURJPY for if both EURUSD and USDJPY resume their rallies together the cross has quite startling implications for the next projection target given its very shallow correction from the 109.95 high… Thus, if these respective trends become a reality look more for the cross for not just a bang for your buck but what looks to have potential to be an explosion.

Thus, take the early stages with care. Remember that USDJPY has a harder task to prove the upside can extend directly. Ensure the breaks confirmed and employ a trailing stop…

Good trading
Ian Copsey

No comments:

Post a Comment