Thursday, February 17, 2011

To make a decisive move or not to make a decisive mood is now the question…

This has all become very messy… Yesterday saw very little of what I was looking for but really didn’t make any decisive move in the opposite direction either. Well, there were a few exceptions in terms of depth of pullback but these didn’t really generate any breaks on which to ride on a trend. It has left me having to resort to less common structures in both Dollar bullish and bearish scenarios, a factor that is normally provoked by complex corrective structures that hide the underlying intent.

Having reworked a few structures I do see that where USDCHF ended this morning actually looks more positive but in USDJPY the situation appears to require a deeper pullback before it can extend higher… EURUSD provided a bit of a “klutz” move which really sits smack in the middle of the upside and downside risks. But GBPUSD crashed only to recover quite firmly but not enough to generate clarity.

I can keep repeating a few more similar phrases but I think the message is fairly clear… It’s mighty messy out there in Forex-land and there needs to be some stronger indication provided. From that perspective I feel we should take the back seat today and observe first to get an idea of where the break will come.

If I have any preference then I’m still a bit more on the Dollar bullish side though still nursing the deviation from expectations yesterday.

Good luck
Ian Copsey


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