Phew, that was a strange day. Not quite as I expected for one or two pairs, but in others there were extreme pullbacks and a total outlier in, maybe you can guess, the Aussie that seems to have been walking about in the Outback with a plentiful stock of the amber nectar. It has been one drunken route full of dead ends. It actually looks as if it needs yet another high above 0.7507.
However, for the rest of the dollar-currency pairs, I have found a general template of limits in each that tends to suggest the next stage in the current structure. It seems as if that sharp decline from 1.0872 in the euro was an even more complex route than I had expected – but given that both GBP/USD and USD/CHF also reached key levels, it appears that all three Europeans are basically confirming each other.
So, the next stage will no doubt be tender first steps in the next directional wave – unless of course if there is some devious scheme to ruin my run up to Xmas. The risks are there – coming into the final stretch through to the New Year with dwindling liquidity and a stronger outlook for preservation of current profits. This is a time of a double-edged sword – submit to doing nothing versus sharper trends that are not challenged for fear of losses.
Take care and be aware of break levels.