Looks Like Some Dollar Gains To Develop
Cue tears. GBP/USD didn’t come out of it alive… However, I know when he rises again.
Yesterday had the potential for expanded flats in EUR/USD, USD/CHF and USD/JPY. Out of the three, it was only USD/JPY that managed to complete the pattern. The two European buddies actually managed to form a lower degree Wave i and (most likely) Wave ii. Perhaps cable wanted to be back in the Euro Club… Nah, it’ll never happen.
Out of the 4-majors we have a minor odd-one out – USD/JPY. Well, on the assumption that yesterday saw the Wave -iv-, and the Wave -a-/v- and probably Wave -b-/v-. So once we get to the Wave -c-/-v- we’re going to need a pullback. This will require a pullback in Wave (b) so we need to watch the downside once a new high has been seen from now.
The Aussie has taken time out to have some R&R. It’s probably best to wait until in either blips above 0.7394 or forms a triangle to then finally reach the Wave -v-. Best is to be patient to wait for the final leg lower to form the (cyan) Wave [a].
Finally I’m beginning to feel that we may have seen the final high in EUR/JPY. It needs to break below 122.98 to confirm this – the problem being that EUR/USD appears to be bearish and USDJPY in a position where it doesn’t seem to have much upside hmmpphh… Take care and note the 122.98 level. Otherwise, while it’s difficult to now conceive, we shall need one last final high…