I was quite happy with yesterday’s developments. Basically, the four majors and EUR/JPY all followed my expectations. Hopefully, we should also see all 5 pairs mentioned reverse yesterday’s dollar losses but we may need a little more consolidation – perhaps some additional swing before this occurs. Indeed, we should see approach new dollar highs by the end of the day – or maybe a little into tomorrow.
I still have USD/CHF being a pain in the backside. Yesterday’s blank data was finally resolved. Something I have not seen since I began with TradeStation back in 1994. I still remain rather cautious for this pair, perhaps there could even be a deeper pullback before the final rally. The MetaTrader data was several pips away from TradeStation and that makes me very dubious of their data… However, that’s just an aside comment.
Take care in EUR/USD. I found the latter stages of yesterday’s losses a little ambiguous. The low was expected but not quite as I had reckoned. We’ll need to work with the 1.1724-1.1763 range to see which breaks first. In GBP/USD we have a similar issue. We may have seen the corrective high but it’s rather vague structure that could see a minor new high – but hold below 1.3226.
However, in EUR/JPY we now need gains – and that’s a little puzzle too. It probably needs both USD/JPY and EUR/USD to provide gains to reverse yesterday’s losses.
The Aussie is doing what it does best – procrastinating. We need a clear break soon to either see a breakdown lower – or indeed, a stronger rally…