Yikes… Friday was not a good day. However, there’s some good and bad in this situation – basically suggesting a few days – perhaps a week of consolidation.
EURUSD was one of the worst offenders along with USDCHF. So I’m a bit frustrated but having seen the structures throughout, it has provided a solution in EURJPY. Overall, this tends to suggest that the while range of currency pairs I work with are all expecting swings. Some pairs have completed a leg that needs a correction while others are already in mid-consolidation. Having said that, there is a general correlation between all of the Dollar-currency pairs with the exception of EURJPY. However, the cross still has the same volatile swings over the next few days.
It tends to suggest a cautious approach, particularly in corrections that can see some jagged and ragged lower degree consolidation. However, today should see some steady Dollar gains but keep in mind the that there are risks within such a development…
Very clearly, all pairs are pointing to a relatively high level of volatility over the coming week. Best keep to short-term trades.