Dull, dull, dull… Normally when performing the analysis I am looking for confirmation of the prior day’s projection forecasts, establishing new ones, and making sure they slot into the higher wave structure. Today was predominantly copying levels I had measured or noted yesterday. There just hasn’t been enough development in any currency (except GBPUSD) to have to do much work. The more frustrating thing is that yesterday’s moves could be counted in several ways: incomplete corrective activity, the resumption of what I was expecting but with complications or the risk of further similar development.
The only real movement we saw was in GBPUSD. As discussed in the weekly video outlook it was in a very delicate position and the break of support has generated quite a decent decline. It’s not a totally clear picture still but does seem to imply further losses. Even then we probably have to bide our time with what looks likely to be an initial correction. Overall I can’t say that my underlying thoughts on this pair have changed but this drop does mean it has more work to do later on. EURUSD and USDCHF are probably best left to their own devices until they’ve managed to complete the structures I suggested yesterday.
The Aussie was probably the better outcome of all, continuing the decline towards the support areas I pointed out yesterday. There’s no change to the expectations but we do face the risk of stronger swings before the base is seen.
As for the JPY pairs… actually, pretty much the same comments can be made here as in the European pairs. EURJPY remains the only one that could have found its low on yesterday’s early gap lower but I’d still suggest taking care due to the expectations in USDJPY and EURUSD that imply a fine balance of development between them that needs to develop in a way that retains the expectation in EURJPY…
Another day when bold actions are more likely to get you into trouble… play safe again today…