Explained: Why gold prices are falling despite raging Iran war
After Monday’s comatose market, yesterday actually provided some decent – and constructive – moves. I do admit to being slightly surprised by the strength in EUR/USD that leapfrogged across two higher wave degree projection targets while USD/CHF drifted lower in a haze and towards the target I have been suggesting. That said, we should now be entering a period of consolidation – so back to sleepy and lackluster development.
Meanwhile, GBP/USD suddenly woke up - having lagged behind its (almost) European partners – and is now playing catch-up. These events are now beginning to coordinate themselves towards the eventual outcome I have been looking for. Therefore, I’m pretty buoyed up for the upcoming sessions – even if we are entering a more complicated part of the sequence.
The Aussie has taken inspiration from the Europeans, and following yesterday’s expected (although difficult to judge) correction, has begun to push higher. This is a complicated move and one that is going to just manage to hold below 0.7834 – or it may break. Either way, given the overall expectations beyond, it slots in well with the Europeans…
I didn’t have much expectation for the upside in USD/JPY and gave a guarded limit – but it didn’t even reach that… The structure in the decline has been a bit difficult to really get a hold on so we need to take some care, but we haven’t yet seen the low – as far as I can see anyway… As promised, those losses dragged EUR/JPY lower and I feel the cross could benefit today with a stronger move.
Overall, with some puzzles here and there, progress is positive.