I can’t say I’m too surprised with yesterday’s long and winding and twisting and wonky road that may have – or may not have – led to a door but could also be a portal to yet more of the same…
My own expectation is for more. If so, then we’ll see the boundaries widen to further horizons. Hence, this is the basic outlook I have for today.
But, however, nonetheless and on the other hand there are two pairs that have a slightly different position – USD/JPY and AUD/USD. The former surprised with its strength. It has the potential to follow-through but there is a key level that could stall the upside and see a recycling. Therefore, take note of the magic portal that would take it into the blue sky. This is going to be important for EUR/JPY also because it could change the outlook in the cross. Approach this with care.
In the Aussie, the pullback higher was perfect and the next target I mentioned yesterday remains intact. While the current decline is part of a directional move, the risk is kinda similar to a consolidation since it tends to argue for a two-way day.
So all-in-all, the risk appears to be for a narrow range day in general. Best to keep trades to the short term