Seriously, that was a pretty poor show yesterday. We should complain to the advertising companies and ask for our money back… Having said that, I can’t say anything went particularly wrong. In fact, I wasn’t really expecting too much in several of the pairs and overall it was a decent day – but the market made a meal out of it…
Following on from yesterday, when time stood still, it should suggest a better performance today. I’m not sure what to expect in USD/JPY because it seems that it may have set itself up for further consolidation. It has options and therefore we shall have to work with the limits of any consolidation. Once these limits are broken it should trigger a stronger directional move. Not a massive one but hopefully to the target area I have been detailing. That EUR/JPY still appears to have options also – but in both JPY pairs their targets seem to suggest the same degree of distance to travel. The only puzzle is how EUR/USD will perform…
In the Europeans, GBP/USD followed my instructions for the most part. There was a slight detour towards the end of the day that can complicate things. We’ll need to be alert to the next break. This could mean that the Continentals need to make a break also. The tight range in EUR/USD actually saw my support reached within 3 points. At the same time, USD/CHF broke resistance but has seen a 4-hour bearish divergence – although hourly is poised to move in either direction. Thus, the key in these two will be momentum.
Finally, the aussie gallantly pushed higher but is getting a bit stretched with the potential for an hourly bearish divergence. I can see two alternatives here – a direct move or a broad swinging one that will take another day or two to finally set it off in the larger degree trend.