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Conflicting Patterns In Forex Market

Published 01/20/2016, 11:49 PM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/JPY
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AUD/USD
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EUR/JPY
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I’m not sure we’re seeing patterns or puzzles. It sure has been a complicated period of corrective development and attempting to try and resolve the most likely next move has been thwarted several times. Indeed, I can see ambiguities in many of the structures that could go either way. Having said that, I’m pretty confident of the final outcome. More, it’s whether we see direct follow-through in the expected larger degree direction or see one final pullback before it all takes off.

Even then, it will only mean that we dig deeper into a larger corrective structure…

It therefore suggests application of patience and understanding where one scenario breaks down and points to the alternative. Until that point it could be best to sit and observe - with the risk of complications that can whip you out as quick as a minor blip.

If there is one pair that could see a decent move, then it’s AUD/USD – even if it is in its own corrective pattern. It will still require care but I sense that it needs to push a little higher. EUR/JPY also has potential to move higher following yesterday’s drop. The driver will most likely be USD/JPY but keep note of EUR/USD that is in that group of ambiguity. However, the 4-hour Price Equilibrium Cloud in EUR/JPY does need to be penetrated

So, a short outlook, not totally clear so do take care.

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