Those two fugitives in the EUR/USD and USD/CHF have not found the jail-break to be as simple as I had expected. What’s more, it looks like one of the HEW Sudoku squares is in conflict with another. This development tends to suggest the need to bunker down and keep heads below the parapet to wait until the Sudoku square puzzle is solved. I do have a solution and one that’s not too far away from the current one. However, for the moment, it’ll be best to avoid these two and merely observe to receive confirmation of my suspicions.
Meanwhile, across that wide river between Europe and Britain, the GBP/USD has been providing a solid development, as slow as expected since the 1.6657 low, but is now approaching the resistance I have been targeting. It has just a little more to go and should reverse lower to then reach the downside target identified last week. This needs to occur in 3-waves so keep your eyes peeled to match the structure with the bearish target.
Another ‘meanwhile’ across the other side of the globe, the situation down-under has still not yet been clarified. It’s developing so slowly that I think the Aussie trading rooms have been occupied by nocturnal Koalas. The line in the chart remains in the same place between bullish and bearish and it’s more a case of confirming the break levels on both sides of the market.
Meanwhile, back here in Japan the USD/JPY has made steady, if slow, gains. It’s certainly looks like it is taking the long-cut (rather than short-cut) route that promises to be slow again. This appears to promise limited gains but risks a modest correction lower at some point. This will have an impact on the EUR/JPY but I can’t see it being a particularly dramatic one. The 136.76 low on Friday is still not safe but much depends on the timing of both the EUR/USD and USD/JPY developments.
So, in these ‘summer doldrums’ markets (although it has been that way all year) we still face short term trades and looking for limited moves.