There were a few good forecasts and a few not so good forecasts on Friday. The Aussie, Swissie and euro-yen basically worked pretty well. The euro deepened more than expected, dollar yen wasn’t meant to make a new low and GBP/USD, well it was a balance between direct losses and a pullback and the pullback won through.
So it was slightly annoying but the outcome should be easily resolved today.
I suspect both USD/CHF and USD/JPY will have a risk of initial losses. This could even see USD/CHF make a new low.
The Aussie rallied but I suspect this will trigger a correction lower. Well, Friday’s high was where I expected it to cap. I can’t actually rule out direct gains but I have my doubts. This will, I hope, form a triangle.
As for EUR/USD and GBP/USD, well they could both see losses but I’m cautious about this but given the need for dollar losses in USD/JPY and USD/CHF we have to allow for the risk of minor gains and this means that we need to be prepared right from the open.
We should, by the end of the day, end up looking at a consistent direction through the majors.