I’ll be glad when EUR/USD and GBP/USD have finally completed their moves. It seems that the other 4 pairs are pretty much developing as “normal” in terms of correlation although USD/JPY and USD/CHF may see a minor blip. USD/JPY should be set for gains while USD/CHF may still see a slightly deeper loss before these two pairs rally together.
EUR/USD and GBP/USD still need further gains but EUR/USD should see a cap earlier than GBP/USD. Indeed, we may see GBP/USD move higher into tomorrow – perhaps even over the weekend into Monday. This tends to suggest that we’re going to continue some rather languid development through today and into early next week.
With USD/JPY set to move back higher along with a (limited) rally in EUR/USD the outcome should be a higher EUR/JPY but probably not breach the 130.95 high. Therefore, this could provide a good bearish trigger for what should be some solid losses.
Down under we’ve seen a deeper pullback but, as with EUR/JPY, there is very little wriggle room below the 0.7191 high. Thus, place stops above that high for some decent losses – once again with what should be some decent losses.