It looks like the pairs are rather disarranged. USD/JPY grudgingly tried to hook itself above the 109.53 high but doesn’t seem to have the energy to push above. Well, that was my preference but we still have EUR/USD making hard work in trying to break below 1.2055 while USD/CHF actually made a new high by a lethargic 0.00004 points… The latter does have room on the upside still. With GBP/USD breaking below 1.3746 to reach 1.3720, it also provided a bullish pergence. Basically, I took the wrong points in the development so really we need a deeper pullback. Having said that, we may have to wait for EUR/USD to turn back higher.
Even then, as I look at the range of pairs, this rather looks like a real mess. We still have ups and downs to go in EUR/USD in particular so I’m beginning to consider the potential for consolidation until the pairs begin to come into convergence with each other.
The Aussie still hasn’t found its low but I’m pretty certain it’ll manage that over today.
So that tends to suggest that, as long as USD/JPY does not make a new high, USD/CHF only managing a limited break above the current high and what should now be a bullish GBP/USD, it tends to suggest we’ll soon be getting a major quorum between the pairs.
EUR/JPY? Well, it has options. It could just develop in a flat, expanded flat or a larger rally above 132.54…