I’m not sure how to describe yesterday’s moves. Well, positive I guess – in the final outcome. The EU whips were just collateral damage. It should therefore mean that we can begin to look forward to a more directional wave – or “waves” that should take us out of the long misery of the “year of the long knives.” However, as always, there’s work to be done and checks to be err… checked particularly pre-European open where the Asian day can provide a reprieve from the sharp whiplashes.
What is clear now, is that the dollar can make its case for the upside, so it’s just a matter of identifying the entry levels and following the lower degree development to confirm the higher degree development (and if you haven’t downloaded the spreadsheet from my website, please feel free and begin to work with the wave degrees) and then Bob’s your Uncle.
All three Europeans should basically be correlated and should be straightforward. This may include the Aussie should it tip below this morning’s low. Otherwise, until then, there is a mild risk for a minor new high.
After a few days of trying to cope with USD/JPY, I feel I may have resolved the structure. It needs ratification, as always when there has been an uncomfortable series of complications, but I’m beginning to feel that we’re going to see the downside develop – and that will have implications for EUR/JPY - that could provide the best carrier of all pairs.
Hopefully, we’ll see a good move later to complete a more satisfactory, although tough, week