For the most part yesterday was basically following the template I had expected – bar AUDUSD. I’ll handle the Aussie first to get that out of the way. I had thought we’d get a triangle and it began to look like it would develop… but… then further losses developed. The downside was always going to be the eventual destination but it just skipped the triangle…
Otherwise, most targets were on target – or pretty close. I can’t really suggest that USDCHF had any targets and instead basically kept itself to itself – preferring not to hustle the other pairs that seemed to have more work to be done. Equally, GBPUSD completed the task I asked for and this will most likely continue to react slowly and surely but without any particular rush. I tend to feel this pair needs to remain in slow motion for a while yet.
EURUSD and USDJPY completed their tasks – and in the process allowed EURJPY to complete its expected outcome. We should now see more of the downside in the cross now and this will require EURUSD to bear the bulk of burden for some while to come.
Although I have some slight doubts due to the Dollar Index, the major outlook should revert to a more bullish Dollar. If there is to be any new low in the Dollar Index I suspect it will be brief.