All that trouble the market had trying not to upset the status quo ahead of the Non Farm Payrolls end up as a damp squid. All that adrenaline, all the build up to the witching hour came to nothing. Nevertheless, the rest of the development across the dollar-currency pairs worked extremely well – with the exception of AUD/USD where Grannie’s knickers got even bigger…
The start of the week should be relatively steady. Some pairs haven’t completed their current development – although most have – and this should see some initial moves that will set up the next foundation legs to see follow-through. We should be able to spot the general area where these foundation legs may stall – within a broad range - so we’re going to have to be patient to then take advantage of the stronger legs of the coming directional waves. However, I actually feel that the week will start pretty slowly with the 4-hour Price Equilibrium Clouds seeing some swings around the Clouds.
Although I hadn’t expected the outcome in the Aussie on Friday it does provide a strong expectation now. The deep pullback I referred to on Friday – that then became even deeper – implies a similar outcome as I was considering in the mini-version. Thus, we’re still going to get a few swings around the 4-hour Cloud. Gee, this pair is a hard nut to crack – and I wouldn’t mind betting it’ll continue that way.
EUR/JPY made a new high at 121.89 but has seen some decent losses – ones I had thought we’d get earlier on. We should see some losses today but later there is a risk of a deeper pullback – so it tends to echo my comment above about having to be patient…
Today should be a steady but likely limited range day…