Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Expect Complicated Developments For USD Trade

ByIan Copsey
Published 01/05/2015, 11:43 PM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
AUD/USD
-
EUR/JPY
-
JPY/USD
-
DX
-

Following such a frenetic opening yesterday there was always going to be an element of caution. Gaps have to be filled, or exceeded to confirm a deeper correction lower in the dollar – not exceedingly deep, but modestly so. However, until those gaps are filled and broken, there is a need for caution. The easy statement would be to say that we’ll see follow-through higher in the dollar but I’m not so sure that will occur.

There are pros and cons. That sharp gap higher in the dollar forced momentum to push higher in both 4-hour and hourly charts. Normally, I’d say that would trigger follow-through. Even then, I’d rather wait for that break rather than anticipate it. Equally, there is dollar support at that gap area that could also be reinforced by the dollar-bullish 4-hour Price Equilibrium Clouds. If there is any of the three Europeans that I feel could see a new dollar high, then it’s GBP/USD.

Therefore, today could be another cautious day – but one to work with breaks.

The Aussie, whipped me a little with the new low – a much deeper Wave V projection. However, otherwise the analysis remains the same.

The JPY pairs failed to push higher strongly enough and, as mentioned in yesterday’s video outlook, the outcome does appear to suggest a sideways consolidation in a complex correction. This could well continue over the rest of today but I shall be expecting further gains. The only downside is that EUR/JPY remains rather vague and isn’t really assisting in identifying the structure. Like the Europeans, it has bearish momentum so should – at some point – see lower lows, but the complications in EUR/USD and lack of direction in USD/JPY could well keep the cross within a limited range.

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.