It seems I misread part of the structures in the Europeans. It does make any difference to the targets I have but yesterday’s deeper pullbacks – as advised in the update – provided the ballpark barriers. The reversal higher in the dollar was pretty much as expected.
As today begins we have options on both sides of the market. Have we seen a completed correction or will we see a direct follow-through? These are always the more challenging moments when considering the depth of a pullback. Even the Price Equilibrium Clouds have a slight duality. In general price has reversed through the hourly Clouds but the 4-hour Clouds are still providing resistance in the dollar. Having said that, in general the 4-hour Clouds are flat with current price smack dab inside the Clouds… However, this may well provide the clues to next move…
The Aussie is holding above the rising 4-hour Cloud while price is smack dab in the sideways moving hourly Cloud – but it’s also starting to see an hourly bearish divergence. The risks are there – but the 4-hour Cloud will likely support – so there’s still a little ambiguity. Take care with this one.
For the JPY pairs – well, EUR/JPY should still look for the target area I have been indicating over the past day or two. The pullback lower in USD/JPY has been relatively shallow – so the balance between EUR/USD and USD/JPY is going to be a bit of a puzzle. Which individual pair will push the cross? At this point I am divided on this… Thus, take care…
Ideally, I’d like to see a solid move develop but the early stages in the day will be critical…