Back to the Dollar downside

Ian Copsey Harmonic Elliott Wave

While yesterday was a slow old day, as far as I can see we should now have seen the final Dollar high – for now. This now requires EURUSD and GBPUSD to develop in a corrective development while USDJPY and USDCHF should see follow-through in an impulsive move.

The balance between the two sets of pairs are slightly different – and it’s USDJPY that will have a finite move at 108.11, while USDCHF that has a more rough target. However, with luck, we should see them both finding a low around the same area for a reversal back higher. Both have seen their Wave i and Wave ii, so we’re looking for the follow-through lower.

The more complicated set is EURUSD and GBPUSD due to the fact that they are forming a correction. At this point, we don’t know whether the recover will develop in a series of zigzags – or just one zigzag… If I’m to be bold (or stupid) I’d suggest a target area in EURUSD to reach the 1.1530 – 1.1560 area while GBPUSD could reach the 1.2970 to 1.3135 area.

That AUDUSD finally found its (brown) Wave -a-/-iii- implies a pullback along with EURUSD and GBPUSD. I’m not sure whether these three pairs will find a high at the same time – but the basic idea is that we have a rough and ready outlook.

As for EURJPY, we have found a temporary low but with the two sets of pairs generally being relatively correlated it tends to suggest a rather messy pullback higher…

Author

Ian Copsey

Harmonic Elliott Wave

Ian Copsey has been around in financial market for over 30 years, the last 23 years as a technical analyst. He focuses heavily on price development and structure as "it is the only way to generate accurate support and resistance".

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