Decline… Correct… Repeat…

There was only one big surprise yesterday and for the rest everything else went basically to plan. Having said that, making plans in corrections is a hazardous process and going forward that outlook should be borne in mind. The Continental Europeans followed the basic theme I had suggested, although with some minor tweaks. The corrections were pretty deep - just a little more than my estimate - but in the overall picture of corrective behaviour the difference wasn’t huge. They should be back on the Dollar bearish track but do seem to suggest the next intermediate targets being the natural targets I pointed out in the video outlook. GBP/USD fell short of my demands. Perhaps that’s not a bad thing given that it seems to have a slightly tighter retracement compared to the other two. However, this should still see the target mentioned in the video outlook also.

AUD/USD managed to edge a bit higher than expected, nothing jaw-breaking, but as suggested the correction was very deep. This little buddy has actually satisfied more than the minimum retracement but with no bearish divergence. It may well be worth sitting on your hands to wait for either a new high, or a break below key support to judge the next move.

It was USD/JPY that totally blew my expectations out of the window. That deep correction was not in my thoughts. However, I have seen where (I think) the problem lay and overall that still points to the same target area. That should now provide the guiding light for EUR/JPY that has, as expected, taken the scenic route to approach its target. With USD/JPY expected to be quite choppy we’ll have to take care but the risk remains for the cross to retain the current lethargy in its move to the long held target range.

Expect another slow-moving day but basically US Dollar bearish.