Most of yesterday was taken up in resolving my technical problems and organizing a more robust contingency plan. There are still a few things to be ironed out, but thankfully I’m back with a fully functioning charting program again.
While “lucky” enough to have performed the analysis on Sunday, the inability to see my charts with counts made writing yesterday's report somewhat of a challenge. There were a few niggling conflicts between the Europeans, but these seem to have been ironed out with the dollar losing out yesterday quite uniformly across the Europeans and Aussie. The message for today is quite simple: basically, we should see more of the same. The interesting thing about the Europeans in particular, is that the GBP/USD is in a slightly different position compared to the Continentals. That’s basically a good sign in many respects, as the corrective limit in GBP/USD is very clearly definable and could/should provide guidance for the other two.
Do remember that overall the basic underlying outlook still implies an underlying Dollar rally.
Following the rather forceful manner of the early trading in the JPY pairs both settled down, perhaps more cowering and fearful of another whipping. There is a mixed outlook in the USD/JPY so break levels will need to be noted. Along with a more two-way movement today in the Europeans, this seems to risk further erratic trading in the EUR/JPY. The way things have developed, it does look as if the cross came to a final halt at 132.76 and it’s hard to imagine it climbing to new highs.
If you want to look at the JPY, then the vehicle must be that the USD/JPY that has a much clearer outlook. That probably provides the better directional trade today, although identifying the Dollar lows against the Europeans should offer a good entry for more a more sustainable directional move.
While “lucky” enough to have performed the analysis on Sunday, the inability to see my charts with counts made writing yesterday's report somewhat of a challenge. There were a few niggling conflicts between the Europeans, but these seem to have been ironed out with the dollar losing out yesterday quite uniformly across the Europeans and Aussie. The message for today is quite simple: basically, we should see more of the same. The interesting thing about the Europeans in particular, is that the GBP/USD is in a slightly different position compared to the Continentals. That’s basically a good sign in many respects, as the corrective limit in GBP/USD is very clearly definable and could/should provide guidance for the other two.
Do remember that overall the basic underlying outlook still implies an underlying Dollar rally.
Following the rather forceful manner of the early trading in the JPY pairs both settled down, perhaps more cowering and fearful of another whipping. There is a mixed outlook in the USD/JPY so break levels will need to be noted. Along with a more two-way movement today in the Europeans, this seems to risk further erratic trading in the EUR/JPY. The way things have developed, it does look as if the cross came to a final halt at 132.76 and it’s hard to imagine it climbing to new highs.
If you want to look at the JPY, then the vehicle must be that the USD/JPY that has a much clearer outlook. That probably provides the better directional trade today, although identifying the Dollar lows against the Europeans should offer a good entry for more a more sustainable directional move.