I had looked for steady trading yesterday, but my idea was for progress to be made. The market interpreted my “steady” as moving sideways in EUR/USD and USD/CHF it seems. The other pairs actually did provide steady progress, although without any strong impetus. Clearly the market remains in self-protection mode – perhaps rocked by the constant sideways development (in EUR/USD) that has lasted for an entire year now. However, all bad things come to an end, and I think that “end” will provide us with a more directional move over the course of today.
In particular, the pairs with uncertain/mixed outlooks appear to have made up their minds – these being AUD/USD and GBP/USD. Having said that, these two made steady losses but should be close to a short-term low. Both made me suffer equally in terms of decoding the persistently erratic decline. Hopefully I have got these two structures right…
USD/JPY made steady, if unspectacular losses over the day. It has taken a round-about route to the target and there could still be some swings and roundabouts to navigate, but overall I am pretty satisfied with how it’s developing. It also helped EUR/JPY to drift lower also. The cross is rather similar to GBP/USD in terms of the erratic decline. There is potential for further losses on the back of USD/JPY and EUR/USD, and therefore could provide the best of both worlds in terms of a stronger directional move.
Overall, I remain satisfied. I’d like to see a little stronger acceleration but we’ll have to be patient still…