Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Surveying The wreckage…

ByIan Copsey
Published 12/17/2014, 11:15 PM
Updated 07/09/2023, 06:31 AM

Keeping to the Xmas theme, I can only say that the FOMC left a slew of wrapping paper that had been ripped from the gifts that Santa had brought. Scraps of paper, broken boxes and trampled rubbish left in the wake of a simple few words.

Has this changed the outlook? Perhaps from the point of view of what I had thought to be the count, but in the larger picture, I don’t think so. Clearly, we shall have to tread carefully from this point to confirm the larger Dollar decline will continue but from what I see of the Dollar Index, all that has occurred is an expanded flat. Thus, I think we can regroup and get back on with the job in question – planning the Dollar downside.

This should be a common theme across all major Dollar-currency pairs, more directly in the Europeans and USD/JPY. The Aussie is basically the same except I feel it has limited upside, basically in a correction. Yesterday’s development in the Antipodean was actually perfect all the way down to the 0.8138 low and back up to the 0.8235 high. The downside targets are not too much lower but we’re probably due a correction higher first. So as we start the day, we’re very much mid-range. Best watch the extremes of the anticipated range.

EUR/JPY took the consolidation route as suggested and this looks like extending for most, if not all, of today also. This tends to suggest that EUR/USD and USD/JPY will probably have a relatively high correlation but note the next larger directional move in the cross should be lower and thus it suggests USD/JPY will outpace EUR/USD.

It seems that, day-by-day, the market is getting trickier and trickier as we move into the final, very illiquid days to Xmas. Take even more care now…

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.