I found things rather disjointed yesterday. There were parts where things went well but in other areas it became rather messy… even weird. To begin with, EUR/USD did at least extend gains but pushed above my favored target, but not beyond deeper projection targets. During the process, GBP/USD saw a deeper correction than expected but then poked up to a new high… by 1 point. This should mean that both EUR/USD and GBP/USD should move in tandem today – much as I had been suggesting in yesterday’s report.
Out of the Europeans, it’s USD/CHF that appears to be floating in the clouds without any real directional sense of where it wants to go, apparently detached from EUR/USD at this point. I still keep a balanced view on this pair – it has options on both bullish and bearish outcomes. This will be a “wait and see” project for now.
The Aussie provided a perfect outcome. This is quite an encouraging pair and may well provide a decent trend from this point. There’s risk of some early dilly-dallying early in the day but watch for the break…
As for USD/JPY… well, I’m pretty confused with the losses we saw yesterday, breaking below my support and broadly maintaining a downward path and with both 4-hour and hourly momentum heading lower. It could be just providing a larger consolidation but we’re close to breaking support. The possible controlling factor is in EUR/JPY but there’s a fine line between bullish and bearish at this point in both pairs. This needs some stronger hold on the structure, which I find a little ambiguous – but in the larger daily picture the downside does look negative.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.