Currencies Should See Stronger Moves Today

I was right in suggesting the JPY pairs would provide the better vehicles yesterday. Their moves developed extremely well and remain very much in line with expectations and are beginning to home in on several projection targets. As the USD/JPY structure develops there will come a point where there is a deep correction so do make sure of the key support & resistance areas for these, outlined in the report. Indeed, there is most likely to be two such instances over the coming week or so. The first should be seen by around tomorrow I think but may just squeeze into the end of today. The same impact in EUR/JPY appears less of a swing but this does basically still have downside to come, mostly fuelled by USD/JPY.

The Europeans were a tad disappointing. True, the Continentals did see dollar losses, well dribbles anyway. Once again a very tight range and quite complicated too. The Price Equilibrium Clouds need a mention once more today as we’re back to the 4-hour Clouds, both EUR/USD and USD/CHF seeing their respective Clouds beginning to flatter out again but this time we have some decent hourly (Dollar) bearish divergences. Therefore the action around these Clouds will be important today. 4-hour momentum also has bearish divergences although not as decisive as the hourly. Therefore be aware of breaks.

GBP/USD refused to bow to my command and dipped even lower. This still has the 4-hour Cloud bearing down and does give me some concern. Yes, I could still count this as a deep correction. The pound can see these rather deep corrections at times but what concerns are both hourly and 4-hour momentum that are threatening to break their bullish divergences. This one’s rather nervy right now so take care…

Finally, AUD/USD pushed to new highs. However, I’m not convinced that it has made any definitive statement here. The recovery actually looks more corrective and that implies a complex that would suggest a reversal lower. The added problem is that it didn’t complete a full series of zigzags so there’s an option for a minor new high and reversal … or it could just plain continue on it’s recycling lower. Thus, take care until this puzzle is solved.