Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

Dollar Expected To Make Further Losses

ByIan Copsey
Published 08/19/2013, 01:36 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
USD/JPY
-
EUR/JPY
-

The month of August has always been associated with the “summer doldrums” from when I first stepped into the world of Forex over 30 years ago. As regular as clockwork each year market volume subsides, the trading ranges tighten, and time appears to develop in slow motion. This year we’ve had more than one month of this type of trading already, and each time I think we can make a drive to resolution the market seems to slip down yet another gear and zooms into the “micro-waves” and stretches them longer.

However, overall the wave structures have held well … just slowly. I do feel that this coming week could reach a climax within the current moves in the Europeans. However, I’m not too convinced that it’ll seem that way. Rather, we could come to a resolution but then equally lethargic initial response. There are some good reasons to suggest this as the structures across the majors are not quite in correlation, and it would not surprise me to see some breaks of the extremes I expect this week.

The Aussie has also subsided into random oblivion, but within its own structure I suspect it will follow the Europeans still.

As for the JPY currency pairs I remain with a more bearish outlook. Today seems to be quite critical in terms of the balance in USD/JPY and EUR/JPY. When considering the expectations in EUR/USD the cross holds some minor short term risk of additional highs above Friday’s and it looks like a fine line on any approach to the 130.72 high. Once this issue is resolved we should hopefully see the downside in both JPY pairs resume.

Take care with the Europeans – basically still dollar bearish while favour the downside in the JPY pairs.

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.