I’m slightly concerned. It’s not that I have any doubts about the long-term but more that we may be heading into “unnecessary” complications. Yesterday saw USD/CHF extend gains. That was expected – but then EUR/USD pushed up higher and GBP/USD also. I have been aware of the potential in the pound with a possible triangle in play – although the next triangle target is a tad higher than normal. However, there is still just the risk of a deep pullback. There is also the risk of a break above 1.1819 in EUR/USD and that will frustrate because it will then begin to clash with USD/CHF – or can both EUR/USD and USD/CHF see losses together?
Ideally, both EUR/USD and GBP/USD should see losses. USD/CHF… well… there is a chance of a minor new high – but “minor” is the keyword.
Even USD/JPY behaved rather strangely – a high at 114.02, a pullback and what appears to be an expanded flat with an expansion of 47%. I’m not sure I’ve ever seen that depth of expansion. However, I’m sure that the rally (the expansion) certainly did not have an impulsive structure. There are strangers in our midst…
Only AUD/USD appears to be “normal” and should see deeper losses over today…
I’d suggest taking care today.