Yesterday saw deeper losses in the Dollar. The question is whether it has completed the move or whether we see a reversal. Such is the conundrum as we enter the weekend. In some pairs there is quite a fine line between bullish and bearish while in other pairs there is still have a larger cushion that could allow the Dollar to dig deeper on the downside. The key is knowing where the break levels lie and what the implications are for the larger daily structure.
At this precise moment we have price below the 4-hour Price Equilibrium Clouds in USDJPY and USDCHF while EURUSD is clearly above it’s Cloud. Otherwise, GBPUSD is hugging both hourly & 4-hour Price Equilibrium Clouds – as is EURJPY and AUDUSD. As I mentioned – a balancing act.
Therefore, we need to observe to ensure that all Dollar-currency pairs are pointing in the same direction…
I feel we shall start the day in a very neutral mode. Hopefully the European and U.S. sessions will provide a more definitive outcome.
Have a great long weekend