Yesterday saw some expected moves - particularly the Continental Europeans that promised a pretty static day. It appears that the 4-hour Price Equilibrium Clouds are guiding these two pairs quite closely and I suspect will provoke a more directional move. However, the structure also appears to have opened up for EUR/USD, but in USD/CHF there needs to be a minor breach of range to clear the way for the next move – that should take the high road for the dollar. In the other European, GBP/USD failed in reaching my expected target and instead decided to extend its gains. While disappointing, it suggests an earlier slight shimmy that fooled me. I don’t think this suggests any great deviation from the larger picture.
Where there has been a diversion is in AUD/USD that pushed above key break levels and seems destined to move higher, but doesn’t really have too much room to move into. So while I expected some upside progress the targets are not too far higher.
USD/JPY looked as if it was going to follow my expectations, but the decline from 114.55 has bitten deeper than expected. This is another deviation but one that has an alternative that should maintain the same upside targets and keeps the structure intact. Do note that from this point there will be stronger swings developing.
EUR/JPY was stronger than expected, but with both EUR/USD and USD/JPY expecting to make gains against the dollar, it’s difficult to judge the outcome in the cross. This will need a cautious approach while noting how each pair develops.