Price development cannot be described as having much energy; the progress made over the past week is reflective of a collective reticence due to the long corrective process that seems to have dulled the minds of market participants. Fear perhaps? Confusion? It certainly doesn’t look like a confident or energetic approach to the coming moves. But there should be a sharper reaction at some point. Perhaps that can be today, but may just wait until tomorrow.
Fractal development in both EUR/USD and USD/CHF has been painfully slow, taking much more time to build than in a normal market. This tends to drag the process into scrappy lower degree noise that needs to be handled with care as it flatters to deceive. As for GBP/USD, it failed to bow to my command, and took the day out to audition for a part in Freaky Friday. This should settle soon and decide on its next foray.
Even AUD/USD maintained – perhaps even slowed – its development, grudgingly making its way lower as expected, but equally with a high level of lower degree noise. However, it has been positive, but I wouldn’t suggest looking for a return to consistent losses, but more scrappy movement.
And guess what? USD/JPY and EUR/JPY are no exception. Both developed well, hardly with much aplomb, but steadily, very much like the Europeans. There’s still some more to go, but don’t expect any massive acceleration.
So the week begins like the market making progress in the midst of a dull, grey sky and drizzle that dampens the market’s enthusiasm and is likely to continue today.