Yesterday’s trading provided some challenges but also some end results. However, I’m not sure that all pairs managed that just yet. The most challenging has been in EUR/USD due to the very direct gains following the break above 1.1677. I’d really like to see another rally but we’re close to a (downside) break level and with an hourly bearish divergence. Therefore, watch carefully and be aware of this duality I have.
Both USD/JPY and USD//CHF saw losses and in USD/JPY it came as quite a surprise. I had begun to give up the downside for an irregular consolidation but somehow the downside all came together. Having said that, GBP/USD is still ensnarled in a consolidation but this appears to be in a triangle that still needs to complete the final stages.
Therefore, we should see general coming together over today and tomorrow, I suspect.
I note that EUR/JPY has seen a sharp decline – but one that needs a pullback. Will that be triggered by EUR/USD or USD/JPY – the latter having a stronger argument. However, that pullback is in the 5-minute market so the overall risk is lower.
As for AUD/USD down under, it has managed to extend losses and we should see further but the risk is a more choppy route…