What’s wrong with the housing market?
Following the slow, sluggish and brain draining consolidation the market had a rush of blood to the head. Well, at least this happened in EUR/USD and GBP/USD – perhaps we can apply that to AUD/USD also. Actually, all three reached targets I set last week. So has yesterday’s highs in all three ended the reversal in the Dollar? One almost certainly has but maybe but the other two are rather vague.
The two Europeans above are due to pullback from yesterday’s highs. The Aussie should make one more high – at least. This tends to suggest an initial limiting range trading with the normal automatic ‘first reversal targets’ should be met and hold for a while. Later I suspect they’ll drag lower for a while. The correction following the first reversal targets could provide the window for the Aussie to edge a bit higher.
The Swiss Franc... well, it seemed I called a top one day too early on Monday. I suspect this will edge lower again today. Unless momentum takes on a distinctly bearish tone, I suspect this is just a correction. However, the structure has been a bit tough so there’s an element of doubt in my mind. Thus, take care. It is subject to jumps higher/lower at times.
USD/JPY languished on the downside yesterday. However, it seems to have found a base that could provide the platform for further gains. I am somewhat wary because it has tended to feign a move in one direction and then reverse in some quite complicated lower degree structures. That EUR/JPY broke free of the double top and pushed to new highs has suggested that USD/JPY may well continue higher this time. Some care is required with the requirement for USD/JPY to probably be stronger than EUR/USD is weak. However, I can’t see massive strength in the cross.
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