It was not an easy day yesterday but what developed was probably the best outcome throughout the pairs. Even then, there is still a risk of swings – the extreme being in EUR/JPY that must be particularly dizzy. Having said that, it didn’t surprise…
First, the pullback in GBP/USD was pretty damn good. It’s done enough but there is a mild risk of a new corrective high. By the end of today, we should know whether it chooses direct losses or not. This is pretty similar to EUR/USD although I feel that there’s an argument for a less forceful decline. While these two pairs look for losses we should see USD/CHF and USD/JPY recover further but they certainly don’t look like they want to make any massive gains – and that suits.
Equally, the Aussie has been taking its own time to work through the downside and should keep company with GBP/USD and EUR/USD. That the two Europeans require a broad swinging decline suits because that’s exactly what the Aussie also needs.
It doesn’t look like a particularly frenetic day again but overall I’m pretty comfortable with the general template through the pairs.