There were further Dollar losses, though not quite as direct. The Europeans saw an initial deeper correction before the anticipated follow-through but these losses are now approaching some key intermediate projections that are likely to provide a more two-way market although still with an underlying bearishness. The good news is that the pullbacks should be relatively straight forward being related to earlier corrections but the bad news is that these corrections could have potential to be quite complex and frustrating.
I’ll even add that there are some signs of a sideways correction developing today. These are not confirmed but the potential is there and, if so, then we could see an extremely dull day today. This would be defined by broadly dull trading that causes hair to be extracted from the scalp and interspersed with mind-blowing boredom…
Well, with luck, it won’t be that bad but I can’t see it being a great day although perhaps the Aussie could entertain a little more movement. I have been waiting for the 0.9304 high to break and feel this could be seen today. Ah, but I can’t see a robust follow-through and more likely a… complicated correction. However, once that has been done with the upside should continue.
The JPY pairs - I was a bit disappointed with USD/JPY. Its failure to see additional losses yesterday was a bit of a blow though doesn’t change the underlying risk. What is now important is for yesterday’s low to be broken – if not then guess what… it’ll spend all day moving sideways… I do have a vague hope that it’ll continue on its way lower as it needs to lead EUR/JPY lower. The cross hasn’t really provided any confirmation of a reversal lower yet and that’s something that frustrates. I do feel that it can drift lower at a minimum but EUR/USD doesn’t look like driving the cross lower – that must be led by USD/JPY, and back to square one…
Thus, it looks like a more difficult day today. Don’t expect excessive moves but do note the areas that would imply potential for follow-through – and mainly Dollar bearish.
I’ll even add that there are some signs of a sideways correction developing today. These are not confirmed but the potential is there and, if so, then we could see an extremely dull day today. This would be defined by broadly dull trading that causes hair to be extracted from the scalp and interspersed with mind-blowing boredom…
Well, with luck, it won’t be that bad but I can’t see it being a great day although perhaps the Aussie could entertain a little more movement. I have been waiting for the 0.9304 high to break and feel this could be seen today. Ah, but I can’t see a robust follow-through and more likely a… complicated correction. However, once that has been done with the upside should continue.
The JPY pairs - I was a bit disappointed with USD/JPY. Its failure to see additional losses yesterday was a bit of a blow though doesn’t change the underlying risk. What is now important is for yesterday’s low to be broken – if not then guess what… it’ll spend all day moving sideways… I do have a vague hope that it’ll continue on its way lower as it needs to lead EUR/JPY lower. The cross hasn’t really provided any confirmation of a reversal lower yet and that’s something that frustrates. I do feel that it can drift lower at a minimum but EUR/USD doesn’t look like driving the cross lower – that must be led by USD/JPY, and back to square one…
Thus, it looks like a more difficult day today. Don’t expect excessive moves but do note the areas that would imply potential for follow-through – and mainly Dollar bearish.