Well, we did see a move towards the 1.1721 high in EUR/USD… in fact, just 0.00005 below 1.1721 and that confirmed a triple three. GBP/USD also saw a minor new high but still in the area where a triangle top could develop. That left USD/CHF looking pretty dizzy and makes the chart look like a toddlers’ scribble while USD/JPY steadily saw ratcheting gains.
So it was a rather dull and slow day but has, at least, found us now looking for the Dollar to start doing its magic. Having said that, there’s still room for lower degree noise to develop over the Asian session.
So, I’m expecting a slow start but later more constructive development that should provide the foundations for a stronger Dollar rally.
AUD/USD has been rather lackadaisical but as mentioned yesterday the risk of a new high in an expanded flat appears to have dissipated and therefore both GBP/USD and AUD/USD have the same structure. We should see losses in both GBP and AUD…
With EUR/USD making gains yesterday along with USD/JPY, we have seen a new high in EUR/JPY. It has potential to break above yesterday’s high – but it’s a tight balance. Much depends on the balance between the two intrinsic pairs. However, it looks like we are seeing a triple top…