While the process of fine-tuning turning points is never an easy one, when the need to ensure that related currencies - that aren’t necessarily in the same area of a particular structure – ideally need to reverse or follow-through at the same time, complications can occur. However, at the same time, each currency pair has a required outlook that should broadly correlate with the others. That coming together appears pretty ripe now and the juice is beginning to drip.
While I was caught by GBP/USD yesterday – I hadn’t expected a triple three – the development in USD/CHF was clear and this does tend to suggest that the puzzle in EURUSD has been resolved. There could still be some minor adjustments over the Asian, perhaps some of European trading I am expecting a more direct development now.
While I have used the Europeans to describe the process of bringing together their respective structures, it can be extended to AUD/USD in this case also. It has achieved the target area set yesterday. There will no doubt be a little fussing around but it just joins the correlated club.
Even then, I can add EUR/JPY also. While the cross currencies can be extremely mischievous, the balance between three currencies adding an extra layer of complications, it has developed well within its position and does seem to slot in with EUR/USD in particular. While USD/JPY remains a bit flappy and could continue like this if it doesn’t break the current wide range, it is unlikely to suddenly fly off in either direction at a pace of knots.
Observe the outlooks for all pairs today. They could provide solid information that will lead the way.