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Steady Progress But A Correction Due

ByIan Copsey
Published 06/12/2013, 01:12 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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GBP/USD
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USD/CHF
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AUD/USD
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RWD
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Following the headlong rush lower in the Dollar during the second half of last week, the market has shaken off the rush of blood to the head with this week seeing some pretty subdued extensions. There doesn’t seem to be much prospect of acceleration at this point. We’re actually more than likely coming to a temporary halt to Dollar losses. It still has a bit to go, but today should see a correction higher begin to develop.

The GBP/USD does still seem to lag behind the EUR/USD, while losses in USD/CHF have languished as it approaches the daily 0.9205 corrective low. While the Dollar should correct higher today, it may be best to take a little more care with the USD/CHF, as its structure is just a little more clouded than the other two. Otherwise there doesn’t appear to be much hope of firm directional moves today, so keep trades short in duration.

The AUD/USD is still insisting that it wants to move lower, and I feel its wish will be granted. The hourly bullish divergence slipped into the ether, while the 4-hour momentum has now formed a potential bullish divergence. I don’t think we’ve seen a more important low yet, but I do think further progress can be made today.

The JPY pairs slipped and slid down the rocky mountainside yesterday. I’m a bit cautious, as neither seem to have formed any impulsive projection ratios. It seems more likely that we are seeing a more corrective decline, and possibly even a complex correction in both.

All 'round the outlook appears defensive and should limit follow-through in either direction. This should prompt us to take profits, that when seen with price development are likely to be similar to yesterday.

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