A Quick Start To The New Week, CHF Leading The Way
Ian Copsey | May 30, 2017 12:21AM ET
Quite obviously yesterday was a general neutral day, lacklustre and a day for sleeping. We’ve already seen some decent moves, quite surprisingly in the early Asian day. However, it’s now slowing down and there is a need to be a little more circumspection until Europe and North America enter the fray.
We also have some conflict within the pairs, some pushing more aggressively higher in the Dollar while other pairs are less active. Equally, this has also generated a strange outcome, possibly quite complex in terms of matching the structures. What really surprised me was that USD/CHF actually led the way, quite unusually.
Over the past few days, USD/JPY has taken to scribbling on the chart. Ideally, it should continue to make gains but we’ll have to take care around the 111.83-94 area which may provide a barrier if we are going to see a triangle. This outcome would annoy but there seem to be too many 3-wave moves developing that could suggest the triangle outlook. Thus take care.
That EUR/JPY should see losses again also tends to suggest potential support for the USD/JPY triangle scenario. What makes this more difficult is the different position in the range of pairs, some requiring modestly deep corrections while others are still developing. This appears to be a strong argument for the cross to remain bearish, for a while at least.
The Aussie spider tracks again. Ideally, I’d like to see a rally but there are some doubts. Perhaps it can remain subdued while the EUR/USD – GBP/USD Wave (i) outcomes are complete. Probably still best to avoid this pair until there is a more consistent directional development.
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