Asia stocks slide with KOSPI battered by AI losses; Iran escalation weighs
It was a bit of a messy day. We didn’t see the expected follow-through yesterday with several pairs suffering recycling although not in a structure with which I feel comfortable. What did please me were the caps in AUD/USD and USD/JPY that came in around the expected areas. It tends to encourage my outlook but recently we have been seeing sporadic de-linking of the pairs that makes life a little more difficult. So the message for today is: if you can’t identify a clear trading signal – don’t trade. There’s much too much risk of weirdness.
The current structure has been pushing the limits in terms of breaking impulsive structures. These levels need to be understood and can provide potential trades that should see follow-through. There are also potential risks of complex corrections that will frustrate.
However, if the current flaky impulsive structures manage to follow-through then we can see some modest trends although within the limits of the next projection targets. Given that the fractals have been fragmented into the lower degrees it will still be better to take profit when seen.
Preference remains for the dollar to remain in the ascendant – but still take care…