With the exception of the Aussie, yesterday’s developments went exactly as planned, a comfortable day with dollar losses being the dominant feature as expected. Elsewhere, even the EUR/JPY provided the move back higher to resistance to complete a successful day. Thus, as we now approach the Ddllar support levels indicated I suggested yesterday, both in the report and in the weekly video outlook the next reaction should be for the dollar to resume its move higher. Once on its way we should then see the follow-through to those next projection targets I indicated yesterday.
There is one exception in the AUD/USD, and also one possible exception in the GBP/USD, although the latter is not expected to maintain the same level of strength as it did yesterday. The Aussie still needs to make a new high and I suspect this will happen today.
The GBP/USD is an interesting case. It reached the resistance levels I suggested so in many ways may look as if it has done exactly as planned. However, I’m not totally convinced with the structure that developed. Having said that I do feel it will see a negative day today and we’ll need to watch the relative performance between the EUR/USD and GBP/USD. If the pound fails to break below key supports I’d begin to get a little more bullish. This should be the focus for today.
Thus, overall today should be a reversal of yesterday and probably all-round. The key will be the relative performance of each.