Trump diagnosed with chronic venous insufficiency, remains healthy
The follow-through lower in the dollar was mild yesterday. I don't think the losses have yet found a low and overall there still seems to be more potential for losses to continue. However, these don’t look like being too direct initially and more likely there could be a period of corrective development. So the focus over the first half of the day in particular should be to confirm dollar lows and wait for bearish reversal indications to develop.
If there is any single currency pair I’d single out for a modest move it’s GBP/USD that should make its way higher again. I don’t want to suggest that this initial move is going to be particularly strong because a decent correction will still be due, but overall I feel this has quite decent upside potential overall.
AUD/USD is another interesting pair. It has a potential double top which, if triggered would imply quite a swinging move since the rally over the past two days is a single unit and therefore will require another push higher. So it’s a matter of either a limited correction – without triggering the double top – or a direct rally.
USD/JPY has reverted to slow motion. It appears to have a bullish outlook but I find the balance between EUR/USD and EUR/JPY quite a complicated one – that has potential to break the bullish view through the individual currency pairs. Just keep the scenarios in mind to be able to take advantage.
So, really it looks like a workmanlike day.
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