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Dollar Sees Further Gains

ByIan Copsey
Published 08/25/2014, 12:36 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/JPY
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EUR/JPY
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DX
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I was quite happy with the way things developed on Friday, the Dollar making further gains to the general minimum targets and I felt quite comfortable as I went through the analysis over the weekend. As I looked at the prices in early (pre-retail broker) trading I see the significant gaps that have occurred with current price really pushing the limits of intermediate targets. Of course, these gaps are going to make life difficult, both in terms of identifying waves but also the skew in the indicators.

If there is any means of judging whether we’re seeing the end of the current leg higher in the Dollar, it has to be the normal extreme projections. So basically the approach will have to be to note these extremes and the reaction at this point. If the extreme projections get wiped away then we have to look for the upside to continue. Otherwise the correction I had suggested was close on Friday can still occur. This basically covers the Europeans and USD/JPY.

The Aussie deepened its recovery. I can’t say I was particularly happy with that although it still remained with a rather extreme final leg itself. This should allow the downside to develop with the targets I’ve been suggesting for some while, still very much on track.

The USD/JPY developed perfectly with the correction we saw. The gap higher this morning is also on target. There’s still more to go but not without a correction. This places the EUR/JPY in a puzzling position, mainly due to the EUR/USD and the outcome of the statements above – whether it extends losses directly or corrects. I do feel the cross has further upside but the question is whether it consolidates for a while or extends gains directly.

Take care at the start of the day and take note of where the dollar resistances lie.

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