Morgan Stanley identifies next wave of AI-linked "alpha"
The day started all nice and comfortable, the dollar edging lower in a correction, but then rushed higher, flapping its wings, before reversing back lower. There are two ways to count this move… Either we’ve had the first leg of a new rally and completed the correction or; we are seeing a very deep recycling that could reach back to yesterday’s lows… If I have any preference between the two I feel it’s the first of the two alternatives because GBP/USD looks as if it has completed its correction.
However, either way, the final result will still be dollar gains…
One thing I will point out is that once the dollar resumes its uptrend the signals I am getting are very bullish. This is down to the deeper corrections we saw earlier that will imply that the latter corrections will be shallower. (For non-Elliotticians … and actually traditional Elliotticians – this is down to an observation that Wave 2 and Wave 4 alternate in complexity and in Harmonic Elliott Wave in depth which is something not considered in the traditional version.) Thus, the rally should be quite a sight to behold…
Next, USD/JPY… edged lower again. Will it go lower? Well, it’s at one of those points where it could be argued from both perspectives. I have to say that yesterday’s developments in EURJPY do tend to point to a stronger follow-through lower so a negative impact on USD/JPY
Thus, for today treat the early hours with care until the European situation is clarified and also how USD/JPY performs…The final result should be dollar bullish against the Europeans…
However, either way, the final result will still be dollar gains…
One thing I will point out is that once the dollar resumes its uptrend the signals I am getting are very bullish. This is down to the deeper corrections we saw earlier that will imply that the latter corrections will be shallower. (For non-Elliotticians … and actually traditional Elliotticians – this is down to an observation that Wave 2 and Wave 4 alternate in complexity and in Harmonic Elliott Wave in depth which is something not considered in the traditional version.) Thus, the rally should be quite a sight to behold…
Next, USD/JPY… edged lower again. Will it go lower? Well, it’s at one of those points where it could be argued from both perspectives. I have to say that yesterday’s developments in EURJPY do tend to point to a stronger follow-through lower so a negative impact on USD/JPY
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is something we need to acknowledge. However, at this point there is nothing confirmed in either direction and I think we should approach this with due care and ensure that we understand where the levels are that will trigger follow-through in either direction.Thus, for today treat the early hours with care until the European situation is clarified and also how USD/JPY performs…The final result should be dollar bullish against the Europeans…
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