FX Pairs Are Busy Going Nowhere

… and it’s most certainly a crime… I’d like to be very happy, but… everything takes a time… (which, for the more youthful, is a song from “A Connecticut Yankee in King Arthur’s Court”). Perhaps it should be changed to Queen Janet’s Court…

It has been a slow, cumbersome, sluggish, lackadaisical and creepy, crawly development. Very clearly this isn’t going to last forever, even if it has felt like it, and no doubt the trigger will be June 23rd.

For the past week I have been pointing out the 4-hour Price Equilibrium Clouds that have been providing a barrier to the (dollar) downside in the Continental Europeans and this remains a factor – but once again threatening to break. Will it, or won’t it? Well, that is the 64bn dollar question.

Meanwhile, in the Europeans, GBP/USD has been ploughing its own field and continues to make solid gains. “I say chaps,” says the intrepid British pound, “what are you chaps up to? I can see blue skies…”

Indeed, there will be a point where the Continental Europeans will play tag and follow the pound to its summit. Well, we’ll be running into some barriers on the upside before long and should slow the upside progress.

As for the Aussie… yesterday saw it go on a walkabout. If I’ve been talking about fine-lines between bullish and bearish recently, and we’re pretty much in the same boat when it comes to the Aussie. It won’t need much more than a sniff or two to see it go higher – but it’s still touch and go.

Both JPY pairs made gains but hardly in any stunning style. In particular, EUR/JPY has a modestly broad range in which it can play and play and play before it has to make a decision. I reckon we’ll see this develop but likely allow follow-through lower later. However, there are clear points where one scenario ends and a new begins.

USD/JPY has been taking minor steps here and a few trips there. I suspect more of this but it can hardly be considered a robust move at this point.

If there’s any possible decent move today it will be at the courtesy of the 4-hour Price Equilibrium Cloud’s acquiescence in allowing a breach in the Continental Europeans…

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