The suggestion that both EUR/USD and USD/CHF could provide the better moves was basically correct. They fell just a tad short of the target I had wanted but basically around the correct areas. Particularly in EUR/USD, this now implies both a deep and complex correction including a potential complex correction within a complex correction.
Bright spark idea for the day: Let’s leave EUR/USD alone today but note the limit of the expected correction.
USD/CHF is a little less complicated, but a puzzle for certain. Yesterday’s high wasn’t as close to my target as I would have liked. The clear point in this is that taking the missing margin and the corrective target, it’ll be best to focus on the correction.
The combination of the complications in the Continentals is going to give GBP/USD breathing room to do a bit more than it has done over the past 7-10 days. Therefore, it should be time for the targets I’ve been mentioning for a while to be attacked. This could be a good pair to follow.
Meanwhile my suspicions in AUD/USD are becoming stronger. There is some risk of temporary consolidation, but otherwise the outcome I felt was more likely is … err… looking more likely. However, it has been a rather slow moving and noisy pair so it’s best left as a medium term trade rather than trying to extract short-term points.
So finally on to the JPY pairs. USD/JPY reached its target and now the market has to make a decision. Combined with EUR/JPY – that fell just a tad shorter than I would have liked – I think the outcome should be the option I favoured for both pairs. Particularly USD/JPY could provide a decent impulsive move. Whether it develops quickly or slowly is the unknown.
Out of all of the pairs it is GBP/USD and USD/JPY that could provide the better directional options.