We seem to have seen key breaks in the EUR/USD and USD/CHF that should herald a stronger follow-through at some point. The problem I have right now is when that stronger directional break will occur. The wave development has been particularly complicated in the 5-minute charts with lots of overlaps and general noise that makes reading the structure rather hazardous. The base approach is to understand the underlying risk and when this is confirmed the follow-through should begin to develop with fewer complications. This is applicable to these two currency pairs at least. In the GBP/USD the move higher from 1.6473 was very firm and is bordering on a break higher… but one that hasn’t been confirmed. Until then it’ll be best to keep an open mind.
The AUD/USD corrected higher and quite deeply, indeed to very much the maximum that it could. I do still look for the downside to develop with a general target range on the downside. Be flexible as we push into that range and consider momentum across 4-hour, hourly and 5-minute charts.
The USD/JPY still has a sharply declining Price Equilibrium Cloud in the 4-hour charts but the way price has been holding up will allow the Cloud to flatten out. During the process there remains a risk of minor new lows. I don’t see this coming low to be the final low, but may well be the penultimate one. This tends to work with the EUR/JPY that seems to have found an intermediate low but is still due one more. These pairs could therefore be a little messy and choppy so I’d recommend observing first and reacting only if there is a clear trading opportunity.
Overall today has potential to remain rather difficult, but continue to consider the main directional bias and prefer trades in that direction.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Breaks In EUR/USD And USD/CHF Should Herald Stronger Follow-Through
Published 01/27/2014, 11:48 PM
Updated 07/09/2023, 06:31 AM
Breaks In EUR/USD And USD/CHF Should Herald Stronger Follow-Through
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.