This past week has seen some slow, soporific and downright boring development. What’s more, I’m coming to the conclusion that we may see more of the same. In EUR/USD, I have been looking for a follow-through lower within a rather weird Wave c/i but I’m beginning to consider a complex correction. At the same time, GBP/USD appears to need losses although there is some space above that could be seen first.
Equally, there appears to be a risk of losses in USD/CHF and I’d rather like to see what happens in USDJPY – there may be a risk of overlaps in the development that could take the Dollar lower. AUD/USD requires a pullback – perhaps similarly to GBP/USD could see – before any further losses.
I really feel that we need to take things carefully until there is a stronger breakout that will trigger a more directional move – and ideally Dollar bullish. Therefore, use a smaller trade size until a stronger break is seen.
Finally in EUR/JPY, if my outlook is correct, it looks as if we may see a whippy day but with a relatively narrow range.