There we were, awaiting the roller coaster ride (aka NFP), and it flopped big time – rather like “Ronin”.
Actually, I was wondering how this would play out, considering the position we were in and the outcome actually helped the remainder of the moves to develop - and these appear (I hope) to be fairly straightforward. It tends to suggest some less than spectacular moves – and just steady development that will have us snoring while we wait. Having said that, I suspect it could be resolved today – max on Tuesday. Then we shall move on to the next stage but that’s going to be a more difficult section to work with due to the foundation waves that need to be navigated.
Of all the pairs, it is EUR/JPY that is the most uncertain and appears to be a complex correction within a complex correction – or at least, it could be just a complete mess. It may well be the case because we’re talking about the generally correlated size of the relative moves in each that appear in each. Since the Brexit collapse in EUR/USD on the 24th June, we’ve basically been in a consolidation and the problem of a single bar crash of that magnitude is that it tends to hide the lower wave degrees. However, for the moment – and it seems quite a long, extended moment – it looks like we’re going to see these swings continuing…
So today looks to be steady in all pairs – or perhaps with the exception of the Aussie that does seem to be eying an earlier directional move…