After the head rush on Monday and Tuesday, yesterday provided a more sedate development. Steady moves – not all pairs following a dollar direction – but making their way in life to make their daily bread. I think in many cases we could see a repeat of yesterday.
In the Continental Europeans we’re seeing price oscillate around the 4-hour Price Equilibrium Clouds but GBP/USD has declined below the hourly cloud – but is now facing the 4-hour cloud pushing up from below. This combination tends to point to a kinda consolidation but with mild-mannered manicured swings. This type of swing is basically a building process for the next larger move.
While we’re talking about swings, we appear to have a similar situation in AUD/USD. It completed an impulse wave lower and then turned round and formed an impulse wave higher. That should give you a perfect idea of what should happen – we have to complete the second legs for both impulse waves…
The JPY pairs have taken their tranquilizers now and should move forward more sedately. In particular, USD/JPY broke below the rising channel, so it has some freedom to swing a bit more in a corrective pattern before the next move. This tends to point to the greater likelihood of EUR/JPY reverting back to its favored pastime of consolidation.
So while we should see some decent moves today, broad swings and a lack of larger impulsive movement, so just pick out sections that look like providing a steady profit…