President Trump’s rant about the dollar being too strong led to a sharp fall in the dollar on Wednesday afternoon. Of course President Trump, who seems to be enjoying the flip-flop game immensely now that he is in power, may want to consider he can’t have his cake and eat it too, i.e, he wants his reflationary agenda to succeed, but it is precisely that success which will likely determine the path of the dollar.
Anyway, the dollar snapped back a bit Thursday and we suspect this will continue. Here are the updated wave charts and comments shared with our subscribers.
GBP/USD 4-hour View [last 1.2523]: Wave 2 corrective rally complete?
14 April 2017/7:56 a.m. ET
A better fit for this pair is an A-B-C corrective Wave 2 into yesterday afternoon’s President Trump driven rally. If this pattern analysis is correct, we should expect sharp acceleration lower from here. Seems a very good risk/reward setup, with momentum turning down near-term.
EUR/USD bear case intact for now…
13 April 2017/9:18 a.m. ET
EUR/USD Daily [last 1.0629]: A decent probability yesterday’s sharp intra-day rally completed minor wave [ii]. Key support is at 1.0587 (see next chart hourly); the swing low is 1.0568…
EUR/USD Hourly: A-B-C into wave [2] corrective high at 1.0677? We need a break below minor wave B at 1.0587 to add validity to the bear case…
USD/CAD bullish view still intact...not below 1.3032
13 April 2017/9:55 a.m. ET
USD/CAD 4-hour [last 1.3244]: The sharp bull-back in the pair yesterday is still within the range of a wave 4 correction and the move down from wave [b] high looks impulsive (5-minor waves to create [c]). Critical support, that which changes the view, comes in at 1.3032. Momentum is turning higher near-term…
