It seems that the market didn’t want to commit to a direction yesterday. It was in a tizzy, flustered and confused – ending the day almost without any real motivation. It was only GBP/USD that surprised on the direct follow-through but then the market had the only pattern – the wedge – to work with. So we have to work out which side of the market is going to break first. Up or down… down or up? Perhaps both. Surely, it can’t be a sideways range…
So basically we have to trade the break. As far as I can see it should follow-through. That EUR/USD made a valiant attempt to conquer the 1.0796 high was only to be expected. The additional problem we have is that we are having to rely on lower degree reversal indications rather than a combination of multiple timeframe indications – but the sideways move has basically excluded an hourly trend signal.
This includes AUD/USD also, it’s boomerang very clearly under the influence of a hefty intake of the amber nectar. The past week has seen it meander into the Outback, under the sun and can’t seem to find its way. It’ll come good at some point…
Equally, EUR/JPY may well be forming a bullish flag… but wait for the trigger. The only concern I have is that both pairs will most likely point in the same direction (bullish vs bearish) and we’ll have to see which of USD/JPY or EUR/USD accelerates first…
Patience today. Hopefully we’ll see the break…