Yesterday was partly successful, partly neutral and partly confusing. When looking at the individual pairs, I also note the potential correlation and how these all need to relate to each other, which produces swirls of patterns and makes me dizzy. There is still a strong element of this as today begins and I find it hard to figure how all these pairs are going to develop. Some appear to have fairly definable structures while others tend to suggest uncertainty. The potential conclusion is the potential for some complicated corrective structures that could drive us mad.
In observing this, I am also cognisant of the timeframe that appears to be implied – probably into December - during which there seems to be a significant degree of range trading but also relatively limited space in which this development must remain within. In short, this implies some nasty horrid range trading that can produce whipsaws.
When does this start? Well, it may have begun in some pairs already. There are some pairs that still seem to point to a directional move and others that, having seen the bleak landscape before them, have decided it may be best to bury their head in the sand. This tends to suggest short term trades for the most part, although there is at least one pair that needs to see a more directional follow-through and one other that has not yet completed an impulsive structure. Otherwise, I am very cautious about providing any forecasts with clarity.
Therefore, watch for those pairs that need a move and ignore the others…