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A Degree Of Volatility For Major FX Pairs

Published 09/09/2016, 12:25 AM

Everything seemed to be going well until 09:00 in the States. From that point all hell was let loose. Having said that, there was no break of structure in EUR/USD, nor USD/JPY. On the other hand, GBP/USD and USD/CHF veered to the opposite. I can cope with USD/CHF. I’m not convinced that I can retain the outlook in GBP/USD. As for the one “down under” … that’s going to need some care lavished upon it…

The drop in EUR/USD can still be considered as a correction – an extreme one – but valid. As mentioned above, I can cope with USD/CHF. So, for now I still have these guys retaining the outlook I have been suggesting but we don’t really have much of a margin before these could reverse.

So we’re going to have to work with these parameters and understand where the break level lie. Even if GBP/USD appears negative there’s no reason to panic sell at this point unless EUR/USD and USD/CHF break down also.

The high in the Aussie was above the target I had, but did reach a higher projection target. However, the reversal has been extremely robust – more than I normally see. However, out of all the pairs, it’s this one that can perform some extreme retracements and get away with it. That said, we now need to approach with care…

Finally, the JPY pairs actually worked well - both stalling initially, saw a pullback and then rallying as expected. This should be the theme but both of these pairs can see a degree of swings so it’s not going to be a clean development…

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