Friday ended in a pullback. We should see this continue for a while but it seems to be a rather limited correction. Therefore, much depends on the market and whether they want to actually trade. There have been, at times, sideways moves that slow down the overall development. However, once this correction has been completed, the directional move suggests quite a decent move.
Therefore, it may be best to bide your time and look for the reversal.
The four majors appear to fit the general template above. That just leaves EUR/JPY and AUD/USD. The cross has very limited upside and that suggests rather stronger losses compared to EUR/USD. Therefore, work with EUR/JPY to identify the reversal lower and but don’t have too much expectation for robust moves.
The Aussie has a more indefinable outlook. Last week saw a pretty robust decline and one that also had a sharp single 5-minute bar of 60 points that really makes life difficult. I have attempted to provide a count but I’d rather like to see today’s movements. I suspect we’ll see some swings on both sides of the market – but as I mentioned last week – there’s still quite a way to go.