The Dollar has begun to slow in its rally. We’ll still see some swings over the next few days but we need to be a little more cautious from this point. I’ve had a battle with EUR/USD over the past few weeks but I feel this will yet still provide some surprises – although there is a key upside level that needs to remain capping. We’ve seen normally correlated pairs beginning to pick fights with each other – EUR/USD and GBP/USD in particular. Even USD/CHF became a little skewed but not by too much but then the Swissie does have its own agenda. However, the positions in their respective structures do suggest a more common break that I feel will be triggered over this week.
As today begins, the early Dollar losses have probably been satisfied – perhaps not quite in USD/CHF perhaps – so it looks like the Asian session is going to head into a correction. With EUR/USD likely to head lower we may see EUR/JPY hanging around to judge what may happen. I’m still looking for a slightly lower Cross. USD/JPY is expected to recover from the early dip.
I suspect, too, that AUD/USD needs a dip over today but it has a rather delicate balance.
Take care from this point as I feel there’s going to be a few swings and reversals coming up.