Forex Analysis: A Two-Way Market Today
A disastrous day, I had everything planned for the Europeans. The USD/CHF was a little puzzling. I went to bed, and upon awakening saw my plans wrecked. That’s the bad news. The good news is that yesterday’s dollar weakness has brought the Europeans back into broad correlation, and as such I remain with an underlying dollar bullish outlook overall. Yesterday’s developments haven’t wrecked that part of the plan. However, what it has done is force an uncomfortable detour, at least in EUR/USD and USD/CHF. While the GBP/USD has actually retained its structure extremely well.When I say that the Europeans are in broad correlation, interestingly all three Europeans are in totally different structures, but all basically signaling the same short term directional fractals. Within this we still have some dollar weakness to come but not until a minor correction is seen. This is where the subtlety of the different structures need to be understood, so even if you only trade one of the Europeans, I recommend that you read and follow each of the inpidual analyses for all three. Combined they are going to provide some strong clue to turning levels.I had been puzzling over the AUD/USD, but the development in the Europeans has clarified the situation here. With the Aussie, the correlation isn’t quite so close, although broadly has been pretty similar. Thus, this pair should make its way higher and still has a little way to go.After its initial burst higher yesterday morning the USD/JPY fell back into rather introspective development. There is a choice to be made regarding continued consolidation and direct gains. I’m rather mixed between the two since if we’re to see direct gains it does suggest quite a decent follow through. This may well suit that the EUR/JPY does have a potential bullish outlook, but one that I had shied away from yesterday because the follow-through wave would have been excessive. I still retain caution, and perhaps this is best as we merely see continued sideways development in USD/JPY. However, don’t fight any break higher.