Mostly I managed to catch the swings but there are a few pairs that, while they went in the right direction, they didn’t follow-through. Perhaps the number one guilty party was USD/JPY. I had been looking for a more solid performance but it seems like it’s still floundering in the lower degree area and that’s a nasty area to head into. It just fiddles around without really making any impact. I sense this is going to last for a while – and perhaps it was the right thing because EUR/USD was making steady gains that pushed up EUR/JPY to within 0.009 points of the May 16th 125.807 high…
This tends to suggest that EUR/USD will have to carry the burden on any losses to carry the cross lower. Indeed, it actually looks as if the two Continentals and the estranged GBP/USD will likely provide a modest trend today. These two amigos and GBPUSD are in the process of building a base for stronger moves later. Therefore, I can’t see any substantial excitement but more steady trading in these pairs.
Finally, I was expecting the Aussie to push back above 0.7517 – but failed at the final moment. Therefore, it tends to suggest it’s going down to just below 0.7442 and then make its way to a new corrective high. All-in-all, that actually correlates with the Europeans although in different structures.
Probably a steady day in all pairs – with the exception of USD/JPY…