Steady As She Goes…

Compared to the furore of last week, having adjusted and settled on a fresh outlook, yesterday went pretty well. If I can sum up today in one sentence, then it’s “more of the same.” I don’t want to get too comfortable with the general theme of steady follow-through because this is a correction and these can be notoriously complicated. This begs the advice of ensuring that the tenets of good money management are adhered to. However, for the most part today looks like it could be very similar to yesterday. There are a few exceptions, in particular AUD/USD, but overall the current moves look pretty steady.

As way of background, we have seen both EUR/USD and GBP/USD break above their 4-hour Price Equilibrium Clouds and on positive momentum. Hourly momentum holds less clarity but within the current corrective structure the direction of momentum will provide confirmation of direction when accompanied by the same 4-hour momentum direction. USD/CHF has its own individual outlook following the SNB announcement. It is currently supported by its 4-hour Price Equilibrium Cloud but is beginning to show signs of a slowing in bullish momentum.
The Aussie has topped out in the right area. Maybe there’s a chance we could see a minor new high but this baby is still being bewitched by the lure of the downside.

The JPY pairs developed well yesterday, perhaps USD/JPY dipping a little deeper than I would have liked, but overall it does seem to have completed a triangle. A little care is required due to the extreme swings, but overall the general outlook I have offered is still on track. Despite the losses in USD/JPY, EUR/JPY did manage to make further gains – albeit it slowly. This bullish outlook does remain valid although I note that hourly momentum does have potential to develop a bearish divergence. Much depends on the balance between USD/JPY and EUR/USD…