The Fed broke the trend. Not that it was a great trend that required adjustments and deep corrections and weird and wonderful additional arms and legs on the sides. I gave a warning back on the 15th July that we’d need another rally in GBP/USD. Yesterday’s upside appears to have triggered that rally with the breakdown in EUR/USD and USD/CHF it seems we have a quorum… What’s more, this tends to side with USD/JPY also…
Now, the problem I have is in scanning through the Dollar losses and trying to establish a reasonable structure and outlook. With yesterday’s description of the lower degree impulsive structures appearing to have qualities of a corrective phase, it make life far more difficult. We shall have to encompass other useful techniques that can guide us on the way.
If there are any detractors from the general Dollar bearish outlook, then it’s in AUD/USD and possibly EUR/JPY – even if it has no Dollar element. I suspect the Aussie may well opt to move sideways in a triangle or just consolidation – for a while. EUR/JPY has a lot more potential for corrective behaviour given the general correlation in the Dollar-currency pairs. Thus, best leave this pair aside and focus on the trending pairs…
Wile I had expected this to occur – even if it’s earlier than expected – the next high should spurn a better trending outcome…