Slow and steady remains the progress that developed yesterday. It’s not my favoured type of development because it raises too much noise that tends to play tricks when trying to establish which are the key wave endings. This should always be kept in mind when working within a trade. Applying a range of techniques and indicators can help to control the main price development along with the expectations of the higher degree structures.
Having said that, we are making good – if slow - progress to my targets and the comments I offered yesterday still remain valid. Some of the lower degree targets were slightly stronger than expected - and this is another issue with a slow moving, noisy development. Obviously, there are a range of projections, particularly in Wave (iii)’s, that can see shortfall against expectations followed by longer Wave (v)’s and equally there can be stronger projections in Wave (iii) and stubbier Wave (v)’s. Within this process, there does seem to be a common theme across the Europeans and to a certain extent in USD/JPY also. This group should continue within the main theme but it is noticeable that 4-hour momentum in the Continentals are building up dollar bearish divergences. GBP/USD has its own structure for now, but does seem to have a common theme.
The Aussie is still a mystery, although yesterday’s upside gains were interesting. It pushes me more to my favoured upside scenario, but I’m not sure this will be resolved today – and even if it does, the degree of any stronger rally does seem to exceed any corrections in the Europeans… I therefore remain sidelined and prefer to observe until a key break is seen
The JPY pairs went in polar opposites – USD/JPY making gains (albeit slow) while EUR/JPY managed to drag itself lower. This process may well occur again today. However, the underlying relationship between these two may well continue.
Slow and steady wins the race again…