It was a steady, if unremarkable day yesterday, but that was expected. Despite the lack of any startling moves, what did happen provided some greater insight to an outcome for which I have been searching. This looks like developing over today although depends on whether the market is lacklustre or illustrious. The first part of the day should see the customary corrective price action that is synonymous with Asian trading but begin to step up some tempo into European trading through North American. The risk in EURUSD and USDCHF will be that with the long U.S. weekend we may find either a degree of reluctance to extend positions over the 3-days that could see either interest fizzling away or a sudden liquidation of positions.
The key to knowing which will occur will be knowledge of the next target area.
In GBPUSD we have a less defined outcome but the manner of its recovery yesterday looks positive for now. It is still subject to complications and the occasional consolidation, but overall it does seem to have a sense of stability that hasn’t been seen for some while. Today should be overall positive I think.
While frustrated with AUDUSD for the past week or so, yesterday’s high at 0.9373 was dead on the money. That it matched the previous 0.9373 high may, or may not, have relevance (because it was a projection target) but this should see risk of a move back lower at this stage.
The JPY pairs… well, I’m not too surprised with USDJPY but feel it needs to begin rallying now – the 103.49 low being the key make or break point. In EURJPY the decline stalled perfectly at the bottom of the target range. I feel it needs another leg lower but not before a deeper correction so the balance between USDJPY and EURUSD is going to be critical…
Have a great long weekend