Yesterday saw a predominantly dollar bullish outcome, most pairs managing to follow-through with the exercise as expected. GBP/USD reached 1.2382 – not quite the level I expected. However, there were a couple of outliers in EUR/JPY and AUD/USD.
To cover these two bad buddies, I realised what may well transpire; a recycling rather than a second decline. That gives us the outlook for today and probably for a day or three. AUD/USD, after all the palaver over whether the 2nd Feb high was 0.7695 or 0.7700, just decided it wanted to kill the downside for now and pushed higher. Thus, I fervently looked at the rally from 0.7145. Having done this so many times, I’m normally pretty good at eyeballing a move and spotting the key areas that need to slot together. However, this was a horror of a structure and thus I sat down thinking it would take an age, but it all fit in really well. The tale is still not complete and does look like being a pain in the backside.
Otherwise, USD/JPY stalled just a few points below my estimated target, USD/CHF just about perfect and EUR/USD dipped a little lower by 9 points to then see a surprisingly deep recovery. Looking at these it tends to suggest some volatility over the next few days. I’m not sure that USD/JPY has the appetite to attempt another rally just yet.
No great trends today but a more workmanlike development.