I can’t say I’m too surprised with yesterday’s long and winding and twisting and wonky road that may have – or may not have – led to a door but could also be a portal to yet more of the same…
My own expectation is for more. If so, then we’ll see the boundaries widen to further horizons. Hence, this is the basic outlook I have for today.
But, however, nonetheless and on the other hand there are two pairs that have a slightly different position – USDJPY and AUDUSD. The former surprised with its strength. It has the potential to follow-through but there is a key level that could stall the upside and see a recycling. Therefore, take note of the magic portal that would take it into the blue sky. This is going to be important for EURJPY also because it could change the outlook in the cross. Approach this with care.
In the Aussie, the pullback higher was perfect and the next target I mentioned yesterday remains intact. While the current decline is part of a directional move, the risk is kinda similar to a consolidation since it tends to argue for a two-way day.
So all-in-all the risk appears to be for a narrow range day in general. Best keep trades to the short term