Ultra-slow development in a structure is one of the most difficult to judge. There are too many mini-minor twists and turns, ups and downs and in my lady’s chamber. At least the direction was consistent and provided gains in the dollar overall. Even USD/JPY managed to take a deep breath and tried to make it back towards last Thursday’s high. I’d like to say with confidence that today could be more progressive… but I can’t. However, we are, at least, approaching the first reversal targets in EUR/USD, USD/CHF – although GBP/USD still has a way to go.
However… and it’s always good to have one of those “howevers”… a potentially positive outcome was the persistent dollar gains that have challenged the 4-hour Price Equilibrium Clouds. This has seen tentative steps in attempting to see dollar bullish breaks of these Clouds. At least, it tends to suggest a positive outcome but the dollar needs to be a little more feisty to increase any possible acceleration… It’s probably likely that there’ll not be much follow-through until the European session.
Even USD/JPY has managed to approach last Thursday’s high and actually helped EUR/JPY to edge higher – or more in a choppy sideways move. This has seen USD/JPY break above the 4-hour Price Equilibrium Cloud and into an unknown. The structure since the 110.97 low is somewhat cryptic but with a daily bullish divergence, along with positive momentum we need see how high this can go. This places EUR/JPY in a puzzling moment that had been looking slightly bearish but may well suddenly see the structure morph into a more complicated structure. I’d suggest care with the cross with the larger picture suggesting a long, messy sideways move.
Steady Eddie trading again today unless the market suddenly comes alive…