These past 2-3 weeks have been tiresome, with the market making the most out of finding every possible nook, kink or cranny to go hide itself in order not to have to make a decision on direction. There doesn’t appear to be any real place to go hide - well maybe some dark, dusty and hidden crack where price can quickly conceal itself for a momentary pause before scuttling away again. The key to seeing a stronger move is in the higher degree structures, but these are beginning to run out of nooks, cracks, kinks, crannies and cobwebs to hide behind. There’s still some buffer area that can be tested - but only in the context of remaining in the recent range – and that a stronger move will then bring a temporary whiff of fresh air. I’m not sure it will last for too long.
Actually, there are signs of movement in AUD/USD. It’s still in the early stages so I don’t think we’re going to see any trend developing just yet, but the foundation waves should be the next step that will later generate a more directional move.
USD/JPY is probably close to making a move lower also, although I'd prefer to see a minor new high. However, the structure has become rather ragged and unstable. This is echoed by EUR/JPY – although it does seem to require a new high. This tends to suggest care with the development difficult to tie down.
Of all the pairs it is AUD/USD that seem to have the stronger outlook to generate a decent move. It may not look like it initially because of the need to build the foundation waves, but overall keep an eye out on this group in particular.
Probably another relatively boring day. Keep out of the nooks and crannies…