Recent days have seen some broad swings that have been rather complicated. I took some time over the early hours to try and resolve the structures. What I feel I have found is that EUR/USD doesn’t seem to have the oomph to break above 1.1721. However, it could still see a new high – but not above 1.1721. Equally, GBP/USD appears now to possibly be an irregular triangle. What must not happen is a break below 0.9892 in USD/CHF and USD/JPY below 110.28 – but with a limit at 109.78.
The boundaries I’ve explained should help provide limits for stop losses – or more positively, further dollar gains.
I’ve noted that AUD/USD has managed to reach the 0.7425 level but in terms of an expanded flat, the target remains the same. The alternative risk could be a descending triangle – rather similar to GBP/USD.
As for the cross – EUR/JPY – we seem to have completed a double zigzag. This has the potential for a final zigzag to form a triple three – or a break below 128.41. Even then, the final break level is at 127.14. Therefore, this pair needs some due care and attention.
Take it cautiously in the early stages but hopefully, the European and North American sessions should sort things out.