I had expected dollar losses, but I can’t say that I nailed the projection targets. It was also clear that the range of currency pairs did not seem to have gelled or moved with consistency. Thus, the usual correlation was off key, garbled, and that has generated some apparent conflicts in terms of a consistent directional move. There is room for follow-through from yesterday, but what bothers me is the lack of general correlation.
Firstly, this tends to suggest that we need a correction of sorts to try and bring the group back into a more uniform outlook. Therefore, while there could be minor follow-through early into Europe, I suspect we shall see some corrective behavior. In particular, GBP/USD appears to have got itself entangled in a spider web that appears to suggest a recycling – or a more complex corrective pattern. This tends to match with EUR/USD – but USD/CHF is less clear or will make its own way in the world.
The Aussie was probably one of the better pairs. It has made a minor new high from the 0.7548 low but hasn’t really convinced that much. Nevertheless, price has moved above both hourly and 4-hour Price Equilibrium Clouds and should continue higher, but I suspect in stages.
Finally, out of the JPY pairs, EUR/JPY made the tentative gains I had hoped for, but still needs to extend the rally or slump into a sideways consolidation. The “mother” of the cross, USD/JPY, spent a day busy doing nothing apart from a minor new low and a minor new high. It leaves both upside and downside options, so best wait for a break…