It Ain’t Over Until It’s Over…

Well, blimey crikey mate… the market didn’t ‘alf make a pig’s ear of trying to reverse… The day began well and I was thinking, “yep, that looks ok…” and was followed by “ok, I can take a recycling” and in the end it was “now that just isn’t working…” Certainly, it was very introverted trading and that clearly suggests the market isn’t quite ready to make a firmer stance or agree on a direction. Therefore, what this does now mean is that yesterday either saw a deep, deep correction in the lower degree or more likely we could be seeing a slightly deeper correction in the higher degree. Clue 1 for today is that Asia will almost certainly not rock the boat. That probably puts the odds in favour of marginal deeper Dollar losses.

To be honest, there’s a not a lot more I can add to the above except to say I still think last Wednesday’s Dollar lows in should still remain intact in the Continental Europeans (or perhaps suffer a minor breach) and that possibly USD/JPY could make a new corrective high – probably EUR/JPY also.

This turn-around in the short-term fortunes has allowed GBP/USD to extend gains more directly than I had anticipated although the structure does suggest a slow development with a couple of modest corrections en route. Perhaps the anticipated high there could provide a signal for the rest. (Maybe it’s a case of Rule Britannia! Britannia rules the Harmonic Elliott Waves…)

As for the Aussie … it has moved slower than expected also and while I had hoped for losses to develop, nothing has gone wrong to suggest the downside is failing. Obviously, with the rest of the market exercising a high degree of uncertainty there are still some risks in the Antipodean but the downside still has the edge for now I think…

Another cagey day today by the look of things and if there is to be a firmer directional move it would appear to be later in the day rather than sooner…