We’re going to see some fireworks! Ok, maybe not today, but tomorrow all hell should be let loose.
Already we have seen some sharp swings in pre-Asian trading, and this has opened up what I feel will be an interesting outcome. What caused it I don’t know – but then I’m not really worried.
Most likely, as the jolly Brits go to cast their votes, (I’ve been denied… because I’ve been out of the UK for too long…) we are likely to see a jittery day with reactions from the voters in the (probable) range of exit polls. It’s probably better to hold off until there is a stronger outcome.
We’ve seen GBP/USD break above Tuesday’s high – along with AUD/USD. I could describe momentum divergences but this event means that, whichever outcome, divergences become irrelevant. I could mention my Price Equilibrium Clouds but the same irrelevance remains. In or out. It’s nothing more than that…
EUR/JPY completed the triangle and USD/JPY completed its correction. I suspect the stronger moves today will be in USD/JPY and to a lesser extent in the cross. It looks like they are both going to be whippy, so be aware of the key areas where there should be reactions.
There’s a not a lot more to say for now…