With a few minor blips we had quite a successful day. I have to say that USD/CHF surprised with an extra push higher than I had expected but it seems as if EUR/USD has completed the decline from 1.1022 so we're now looking for some upside and for USD/CHF to take the bumps down the stairs. All good fun and games but now we’re going to have to wait to see what will happen. Over the past few days I have been saying that GBP/USD needs a bump higher so we can wait for how strong it will be.
The rally in USD/JPY reached my target and just a bit above. So, as with the Europeans we’re now seeing losses. We’ll have to watch the comparative development to judge momentum and to see where this can extend. Both 4-hour and hourly momentum remain bullish here.
Yesterday’s gains in USD/JPY really helped EUR/JPY to extend its rally to 124.53. I suspect we may see another high. Once that is done it’s down to the fates of EUR/USD and USD/JPY and the relative balance between them.
Finally, sleepy old Sydney dollar managed to slip lower courtesy of the bumpy losses. It needs a pullback and then a second low but there’s quite a range in which it can move into. Take care.