EUR/USD Has Topped Out At Last
Ian Copsey | Aug 30, 2017 12:17AM ET
Yesterday was a tough day – too many difficult structures and some surprising outcomes. However, the good news is that EUR/USD has topped out – at last. Even the BBC reported the fact that it hit an 18-month high. When that happens it tends to reverse… USD/CHF also hit a new low – but should have been the final low. Therefore, in the larger picture, we have a long way to go on the dollar upside.
So… now should be focussing on the dollar upside. USD/JPY shot higher rather like a North Korean missile with USD/CHF also making gains but not quite so robust as USD/JPY. However, what this implies is a 5-wave rally so take care over today because we’re likely to see a reversal lower. In that pullback we shall have to observe carefully to be able to identify the Wave (b) – and who knows how deep a Wave (b) will be. So basically, we’re building up the foundation waves.
In all the furore yesterday, the jolly old pound was taking its time, taking things step by step. No doubt it will be the same on the way down. It looks like it’ll be a steady move over some time.
EUR/JPY… well, I think it has topped out but I do have some reservations. Certainly, EURUSD should correct higher fairly early on in the day – but that’s the same in USD/JPY so it looks like the cross is going to be seeing a relatively tight range.
Now that the Aussie has committed to the upside it has to continue but it looks like it’ll take some time.
Get The News You Want
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.