My outlook from Monday ended with the expectation: “Overall, this tends to suggest short-term trades for the problem pairs but EUR/USD and USD/JPY should provide an initial move – but then could see the middle of the week rather scrappy.”
Bingo.
And it ain’t yet finished… Today -and even into Monday - looks like maintaining the consolidation in EUR/USD and USD/CHF. So expect a move into the middle of the range at least. Boring – yes. Expected – yes. However, that’s the way the cookie crumbles. Such is life. Such is the whims of the market.
AUD/USD has been another fractious development. I maintained a neutral stance but finally we saw the losses I had expected – just a tad lower than I estimated but pretty close. So it should move back into the consolidation from whence it dropped lower.
Actually, the pairs I follow appear to have begun a period of correlation – perhaps GBP/USD aside but I suspect it will revert to join the others early next week.
As for the JPY pairs, they appear to becoming a little tired so we’re going to have to be aware of their individual development and structure to cope. It may just end up in a consolidation. However, it is also riding a fine line between bullish and bearish… Keep that in mind.
Best get some rest going into the weekend