Close to a reversal

Ian Copsey Harmonic Elliott Wave

Ouch… The correction I expected was nothing like the pullback I had envisaged… Instead, in EURUSD and GBPUSD the Dollar ploughed higher and basically almost completed the entire move rally. This tends to suggest limited gains from here on. Most likely we should see a pullback lower in the Dollar and later new high over – maybe today - or into tomorrow depending on how the market decides to react.

While all the rush and fever in EURUSD and GBPUSD, the other two majors quietly looked upon their brethren and forgot to react. USDJPY should see a minor follow-through and later a recovery. Equally, USDCHF should rather remain in a sideways move. The reasoning comes from the fact that EURUSD and GBPUSD appears to have limited Dollar upside and over the week a firmer correction. GBPUSD may well have completed its decline.

We may have seen the Aussie complete its Wave v but take care. Either we’ve seen the low – or will see limited follow through before the reversal higher. I also suspect that EURJPY has found a low for now and may well begin to see a ragged pullback higher…

Take care over these limited Dollar gains.

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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