Slow, Steady Gains For The Dollar

Yesterday was a day like any other day. We had similar development, similar slow but steady gains in the Dollar that hit some interesting targets in some currencies, not in others. I am encouraged by that development. I’m not sure I’m expecting much to happen today – or at least for the first half and maybe two-thirds of the day. I’m pretty sure it’ll resemble the type of progression that we have seen for the past two weeks. However, there are some much stronger indications that are developing with some critical highs/lows that must be watched with care.

We still have the 4-hour Price Equilibrium Clouds supporting the Dollar and, quite interestingly, currently floating in the areas where those critical highs/lows exist. These are where the balance between bullish and bearish will be judged and stronger reactions can develop. These will be highlighted in each relevant currency pair, so take note of the implications of breach or failure.

The above covers the Europeans in general but could be applied to USD/JPY also. It developed almost point perfect although stalled at a projection level below the one I had expected but frankly doesn’t make that much of a difference. The outcome should remain as expected. It has just taken a long, long time to reach its target – 12 days to be precise…

This doesn’t leave EUR/JPY in a particularly clear picture. It has been developing in perfect three’s since the 137.24 high but it’s that initial “three” that provides the uncertainty, a factor that can allow several structures to develop. Therefore, the respective development in EUR/USD and USD/JPY will have to be observed to clarify the overall intentions.

The Aussie frustrated by making yet another new low but I do feel this one will have the impact I had suggested yesterday. The problem with this expected recovery is that the depth of the recovery has a degree of uncertainty. It’ll need to be watched with keen eyes to spot where it’ll stall…

Another day, potentially a pivotal one, but one that promises to start like any other day – with limited moves. Yesterday was a day like any other day. We had similar development, similar slow but steady gains in the Dollar that hit some interesting targets in some currencies, not in others. I am encouraged by that development. I’m not sure I’m expecting much to happen today – or at least for the first half and maybe two-thirds of the day. I’m pretty sure it’ll resemble the type of progression that we have seen for the past two weeks. However, there are some much stronger indications that are developing with some critical highs/lows that must be watched with care.