Europeans Continue Steady Progress As Dollar Shows Intent
Although not everything went according to plan, the basic development yesterday was extremely encouraging, with a few direct hits. It has also brought some greater structure to EUR/JPY, and in a way I had anticipated. This is encouraging in terms of the fact that the dollar has shown its intent, and unless some dramatic turn-around occurs, we’re going to see more of the same.
The Europeans continue to make steady progress as the dollar imposes itself, but there is just one possible snafu that suggests a parting of ways between the Continentals and GBP/USD. Having said that, today should be a steady day, but one that needs to see momentum provide some indications of corrections/reversals. While the development has been constructive, there is still a higher level of volatility in terms of deeper swings – still a sign of a nervous market.
AUD/USD hit its downside target within 3 points. This chappie has been performing extremely well also. It’s due a little more in terms of a pullback, but overall, like the Europeans, momentum still remains bearish.
USD/JPY has continued its rather whippy development, but has been constructive after an adjustment I had to make. The entire decline from the 124.37 high has been exceptionally volatile, and appears to be continuing that into the lower degree structures. It seems most likely we’re going to see more of this, so take care. The impact of both USD/JPY and EUR/USD seeing whippy swings is playing havoc with EUR/JPY. I’d take care with this one until the larger structure has been completed – but the overall expectations for the cross remain the same.
The Continentals and AUD/USD are probably the more straightforward markets…