So much for correlation. Gee, I wish I had been taking a holiday this week. The first two days of this week have been bad. Maybe I have been trying to match pair for pair but it just didn’t work. However, barring GBP/USD, the other 3 majors still appear to be hankering for a final fanfare.
Particularly in USD/JPY, I cannot see any alternative. In EUR and CHF I have found difficult structures that have generated stubby final legs that normally don’t happen that often. I’m also finding that the general degree of required moves doesn’t seem to have a close correlation between them. It’s certainly good for headaches though.
It looks like we have the normal start to the day. I suspect EUR/USD may need a new low – but there is a critical point low at 1.0620. If that breaks it would look a lot more bearish. USD/CHF has made a staggered push higher to hold below 1.0044 – so it too has a key break point. As for USD/JPY, it looks like an alien in a movie, creeping lower with robotic arms. These three need to be resolved and hopefully today.
Meanwhile, down under, AUD/USD has broken its double top trough – but we all know that deeper retracements can still occur – and double tops can fail. So, we still have risks throughout.
In EUR/JPY, I sense we’re coming to a point where the downside is becoming a bit tired. There’s a risk of a deeper pullback – but within the structure we have been riding lower there are still some swings to go – but I don’t think we’re going to see a strong rally…