The dollar strength has been pretty relentless since the U.S. election. It should start the week reaching new highs but a correction is due. This could provide a lull in the proceedings, so best wait for the next opportunity. I’ve gotta say that the 4-hour price equilibrium clouds are doing a great job of coaching price across a wide range of the pairs – but we’re also seeing momentum beginning to slow and that also suggests some care is required.
Frankly, this probably sums up what I feel will develop today.
So we’re going to have to be aware. Some of the pairs have pretty precise targets – those that are approaching Wave (iii) positions which, in general, are the easier to identify – not only because there will be one or two specific targets but also because the Wave (iv)’s do, in general, have a recognisable target area. However, those pairs that are moving to a Wave (a) target have a more variable range targets and equally variable range in the resulting Wave (b)’s. These are the more challenging elements to be navigated.
In addition, in both cases, we have to be aware of the potential for a variety of corrective structures including complex corrections that could extend the pullback for a longer period.
Be aware as we start the day.