Unlike Monday, after the gap, yesterday actually provided some more positive movement. Indeed, it appears to be approaching a turn. Even then, the balance of the movement in the individual pairs was rather haphazard. Both USD/JPY and EUR/USD continued their gains, thus pushing the EUR/JPY cross much higher but equally both pairs appear to be very close to a reversal. Indeed, this is very much required for the daily structures.
At the same time as EUR/USD and USD/JPY have been so strong, USD/CHF managed to act as an uninterested bystander. It did have the potential for another bearish zigzag but spurned the choice to do so. Therefore, I feel we need to be prepared for losses in both EUR/USD and USD/JPY although the latter will likely only see a correction lower while EURUSD needs an impulsive decline.
As for GBP/USD, the poor sleepy head had to rustle up some enthusiasm to extend gains. It’s a weird and pretty slow moving ice flow that seems like it may well continue in that mode for a while rather like an incestuous relationship with itself. That said, at some point, it must begin to turn lower, but I don’t think it’s particularly imminent.
I raised the potential for a triangle in AUD/USD and that it seems to be developing, at least the second leg. This should keep it occupied for a day or three more but then likely see a second rally. Basically, this saga that began around one year ago looks like continuing.
It seems like a slow day but at some point, whether it’s today or tomorrow, we should begin to see stronger directional movement.