Eventually this log jam will break down, and with the G7 finance ministers meeting all eyes are focused on London for the next two days.
Classic consolidation patterns abound:
EURUSD well defined triangle.
USDCAD has continued to hold above the breakout we documented last week.
USDJPY in the wee hours had just pushed through the upper bounds of the upper trendline.
GBPUSD remains just inside its consolidation pattern
Looking at these charts, if left to its own devices the USD is on the mend at present, strengthening not weakening against other currencies. Some, like the USDCAD pair, have already given rise to a useful trade entry, many of the others are just testing consolidation boundaries and are bound to make an attempt to break out during or following the G7 meeting. As failure so often follows – even if for a bar or two – price breaking through consolidation, we have to pay particular attention here.
Of course, Gold will not be the place to be IF these breakouts in favour of the USD do continue and hold.
05.02.03 09:11 #