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AUD/USD Missed Deeper Correction, Which Triggered Losses

ByIan Copsey
Published 01/29/2015, 11:46 PM
Updated 07/09/2023, 06:31 AM

I mentioned a couple of days ago that because we are in a corrective phase there would be risk of complications setting in. Well, it has happened earlier than I had bargained for… Two of the pairs that I suggested had clearer outcomes were EUR/USD and GBP/USD. Both listened carefully to my thoughts and decided to do the opposite. I can cope with GBP/USD although it does suggest quite serious implications for early next week. It may well be the same for EUR/USD but I’d rather sit back and let today develop. All I could see from yesterday’s development was complicated corrective behaviour and with some ominous signs from GBP/USD, it may be best to approach with care.

USD/CHF rallied well yesterday although it appears to be approaching a barrier. Therefore, the risk of a correction lower is very much on the cards. However, this is a pair that still needs to be handled with kid gloves – so take care.

AUD/USD didn’t see the deeper correction and this triggered losses that then broke below my anticipated target – but following a shallow correction, this would have been the implied outcome. It has approached a key support, even if temporary, so don’t expect a repeat of yesterday…

The JPY pairs continue to confound. However, I feel I may have discovered the reason and need to test this out today to confirm my suspicions. It tends to suggest further consolidation within the current wide range between 115.50 - 121.84. Quite what this means for EUR/JPY is a conundrum. EUR/USD has become engorged with confusion while USD/JPY, as mentioned, is due to go nowwhere it seems. This doesn’t really provide us with many clues for the cross – except, until there is greater clarity in either EUR/USD or USD/JPY, it remains a pair that is best left alone.

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