Decibel Levels High

This is a tough market right now. While I have maintained a directional bias, the noise within the moves has been very noticeable. That may not sound as if it makes life tough, considering the lower degree fractals provide the foundation blocks for all higher degree fractals, the risk of a misjudgement rises considerably. However, the hourly fractals are providing reasonable information and so the task has been to judge how progress is developing in line with the expected hourly targets. So far this week it has been mainly reliable but there is risk of even greater introspective development in the form of complex corrections. Thus, the approach is to remain cautious while in a consolidation and wait for the breakout.

This broader consolidation looks like extending into next week. That we have a long weekend coming up will keep the status quo much the same into the middle of next week but we’ll have to watch for the breaks by the end of next week. Having said that, we are due the Non Farm Payrolls tomorrow when much of the European market is taking a holiday - and therefore in a very illiquid market.

Today should be dull again with limited ranges but potentially beginning to run out of steam on the Dollar upside. I noted that AUD/USD missed its downside target by 3 points. Doesn’t sound that much but I do, at least, like to see minimum projections met. This is likely to give the Aussie a breather but it doesn’t have much room to move before follow-through…

The JPY pairs… well, USD/JPY could resume losses but hasn’t done enough to prevent further gains being seen. EUR/JPY does need a minor lift but could do so within a sideways consolidation. It will be best to wait for that consolidation range is broken. So, we must continue to play a patient game until the breaks area seen…

Another tough, introspective day expected again.