I’m quite satisfied with yesterday’s analysis. There were a few tweaks but within the options open. There is an interesting confluence of patterns that threaten to make the next day or two remain in ranges. While I use 3-wave structures in just about every area of the wave structure, when they occur at the beginning of a corrective structure that could turn complex, then the potential is for complicated sideways trading with a choice of three structures. Well, that’s what we face in USD/JPY, GBP/USD, and AUD/USD. The balance in EUR/USD and USD/CHF remains unclear but I don’t see EUR/JPY reacting with any vigour - so a dull day is expected.
Out of all, perhaps it is USDJ/PY that has a clear direction, although AUD/USD perhaps also requires some early break of a key level to confirm my suspicions. On that note, GBP/USD could have a slightly alternative structure so it will require observation to confirm its intentions.
The problem we shall face is determining which of the three structures are going to develop in each of those at risk. I shall do my best to describe the alternatives but I suggest that when coming to the point where a decision is made, either take profit if in a position, and if not, then don’t trade. At best, I can provide what I think are the outer limits of these structures, but of course there are three variations so care is going to be required.
If there is any pair that could make a firmer move today (ignoring the potential for consolidation) then it’s GBP/USD. Take note of those limits in particular.
That’s about as much as I can offer today except to say that if there’s any clear trade it could be in USD/JPY – but still within a complex correction.
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