Aussie Appears To Be On Track
Ian Copsey | Jul 29, 2014 02:30AM ET
Sitting down before writing the report, providing some (I hope) useful comments that will enable some idea of my thoughts on what can happen has normally been relatively straight-forward. At times recently, it has been tough to add very much because the progress has been so deathly and boringly slow that it’s difficult to provide any additional constructive guidance. Yep, yesterday was one of those days. It does remind me of the tortoise and the hare when the hare, ahead by miles, decides to have a sleep which allowed the tortoise to win. This market is a bit like that. It would be so easy to slip into a comatose state during which a moment of classic market panic develops and all is missed.
Yesterday’s action was just like that, except it was possible to have a good 20 hours of sleep and not miss a thing…
If there is anything I can add to yesterday’s comments then it’s about the price Equilibrium Clouds. Yesterday’s neutrality has allowed price now to trade around the hourly Clouds and for the 4-hour Clouds to approach and begin to envelope current price action. There are no clear hourly dollar bearish divergences and actually, even 4-hour bearish divergences are coming under threat. I don’t like this development and it will mean that we’re going to need a machine that provides a gentle electric shock every time we nod off and have a sleep.
At least the Aussie recovered from my support area and seems to be on track. Still, I’m not sure we should be expecting any fireworks and more likely to see some rather slow, choppy gains.
Even USD/JPY appears to be developing a sideways consolidation but, as of now, there are no clear reversal signals. However, it’ll be well to understand when it breaks key levels.
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