My day obviously takes up a lot of time working out the development, basically from my base in Asia that provides a launching pad for the development, whether bullish or bearish. Sometimes it’s a slow day but yesterday – in EUR/USD and USD/CHF in particular – there was a rush higher in the dollar.
It makes sense considering the range of different structures. However, USD/JPY made its rally earlier and is now seeing a decline, but should soon see gains. Somehow, this seems counter-intuitive. However, it’s still part of the market but once we have seen the dollar highs, it tends to suggest a dollar rally.
Well, I’ll go with this anyway… So, excluding USD/JPY, we need a limited follow-through in the dollar for a reversal that should be modestly firm. Even AUD/USD has been seeing losses but we’re close to a reversal, similar to the 4-majors minus USD/JPY.
With the collapse in EUR/USD and USD/JPY we saw a jolly decline in EUR/JPY but even then, we’re close to a reversal back higher for a correction by the end of the day.