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Has It Stopped … Or Is There More To Go?

ByIan Copsey
Published 06/14/2013, 01:11 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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GBP/USD
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USD/CHF
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EUR/JPY
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AWRE
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OEXP
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Time will tell…
Thursday’s follow-through didn’t extend as far as I had expected – at least in EUR/USD and USD/CHF. Where they did stall provided both hourly and 4-hour Dollar bullish divergences. What we don’t have is a break of key Dollar swing highs. Time to bite some nails. Overall I am looking for a reversal, so this should have been the modus operandi for Friday.

But what of GBP/USD? Asleep for much of the day, but then had a pin stuck in its rear to thrust it up to 2 points above my intermediate target. This shouldn’t have been the final high so the emphasis should have been on looking for a corrective low. This posed a question of whether any new high in the GBP/USD would be matched by the Continentals.

Time will tell.

The Aussie… … I had a look at the daily chart and thought I saw a solution. The ratios didn’t exactly enthral. They were not too far off and the pullback was about right, and even better, would work with my downside target. The short term is slightly uncertain, but as long as we begin to see the downside resume there is the possibility of new lows. However, I will add that in terms of the daily retracement target area we have most certainly seen enough. We have had a good 4-hour bullish divergence to complement the daily divergence also… What’s more, I normally see the Aussie reversal a bit before the Europeans. Be aware of both sides of the market.

Finally the JPY pairs… whew… the losses were more than I had expected, but well within the target range. The EUR/JPY even stalled at one target to the very point. The reaction higher has been pretty firm, so further bullish progress would be very satisfactory….

It should be an interesting day and one to watch for clues…

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