Pre-Xmas Sales Rush

There are still bargains to be found and Santa seems to have found himself short of gifts so the market has begun to shift a little quicker. My targets in EUR/USD and USD/CHF were met, but I have been surprised by the structure that tends to suggest that these Dollar losses are not yet complete… Of course, we still have to be wary of the corrective phases and the potential for complex structures, but it would not surprise me to see a relatively quick follow-through. Once this sequence is complete the risk of a longer correction is quite possible with just 5 trading days left before the big man tumbles down the chimney.

Elsewhere, the other currencies were a bit more complex. It almost seems as if GBP/USD has joined the irregular triangle club. Whichever way you look, the recent development has been like a gaggle of London traders on a pub crawl over lunch. If I’m right, it won’t be too long before it begins to take a more direct route. It’s one of the currencies that is best avoided at the moment…

AUD/USD stalled, looked back over its shoulder, and then decided to whip back for another glass of the amber nectar. However, it should now continue its steady decline with the cluster of projection targets not so very far away.

As for the JPY pairs… well, they’ve made their statement and appear to be generally following the general Dollar pattern in line the Europeans (excluding the London pub crawlers…) There has been a basic correlation for a while now and it suggests that we’ll see a relatively consistent development between the two groups. This hasn’t stopped EUR/JPY from losing out also but, considering the outcomes between the two groups, it looks like we could see some longer lasting consolidation in the cross – in the larger picture. This suggests relatively limited extremes to the current development and one that should see a stronger directional move develop early in the New Year.

EUR/USD and USD/CHF remain the pairs with the greater clarity for now.