OK… GBP/USD has topped out. EUR/USD appears to need a new high – along with AUD/USD. USD/CHF has found its low. USD/JPY, having been the leader of the bull pack, is coming to a high. What a ragged set of pairs that can’t generate any correlation…
Shame on them!
Ok, that’s a bit harsh but it has been a rather strange development over the past few weeks particularly with EUR/USD, GBP/USD and USD/JPY all pushing higher together. With the exception (in the near term) that EUR/USD will see a final minor new high, we should all majors working together. However, I suspect this will only find a quorum after the weekend – and that tends to suggest some consolidation/foundation wave building before any strong moves. Therefore, keep trades tight for the moment until all pairs are developing together.
Even AUD/USD still seems to have further gains to be seen but once the high been established we shall begin to see losses resume.
Finally, I sense we have seen the final high in EUR/JPY. Thus, we should be looking for losses…