Another Week Winding Down with Both the Dollar and Risk Trends Lacking Direction

I am at a self-imposed impass. Given the underlying pace of investor sentiment is still running moderate levels of volatility and completely lacking for a consistent bearing, I am still looking for short-term setups. That being said, it is not advisable to take setups that are supposed to play out relatively quickly close to the weekend. I don't like to hold such limited engagement trades over the weekend because something unforeseen can occur during the lull in liquidity; and establishing a setup before this drain often leads to stalled setups. Therefore, my book will likely change little until Monday - unless something incredible happens (which as a trader, I hope it does).

From my favored short-term potentials laid out yesterday, one has been triggered while the other has progressed in the opposite direction that I had favored. Looking at GBPAUD, the step sell off and turn to congestion led me to believe best, simple risk/reward was looking for a bullish break above 1.69 on a reversal. Instead, the pair broke below support around 1.6750. While the cross has since bounced to test this former large technical support level, it doesn't strike me as the most encouraging continuation pattern. I'll defer. For GBPCHF, on the other hand, the month-long descending trend channel seems to have been tentatively set off course (coinciding with a break of the 50-bar SMA on the 240min chart). I have taken a tentative and small long position at 1.5675 with with stop at 1.5525 (clearly sizing is important with this wide of a stop). As for the other appealing setups out there (EURUSD's congestion, AUDJPY's large wedge, AUDCAD's high volatility, and CADJPY's long-term trend), I will wait on these unless until after the weekend unless they have potential and stops wide enough to offset the weekend lull.

For my existing positions, my very small long USDJPY position is making little progress in either direction. I have been asked what can get this pair moving. It will likely fall to Japanese policy or an unforeseen crisis from either economy. For my EURUSD short, the second half of my position is just around breakeven (the first half still well in profit). Now, we wait for a break from 1.2935/2650 for a clarity. And, GBPUSD has returned to congestion rather than jump start the momentum in yesterday's climb - fortunate for me. I'm still watching these three pairs very closely from a fundamental and technical perspective.