The heading is basically correct – I think at least … but there is one outlier in GBP/USD that could buck the trend – or I may have screwed something up.
I had some doubts yesterday morning – mostly because when I started in the morning there were chances of dollar losses, although I knew we could see direct dollar gains. Very clearly, the dollar did make a direct move higher, so all was well. The fact that GBP/USD chose to buck that trend was the surprise package.
In some respects there is a similar conflict at the start of the today - but pretty much the same as yesterday. I have some rough targets I am looking for but there’s one pair, USD/CHF, where I can identify a more accurate stalling point. I’d suggest that you keep that target in mind, as it’s very likely that the other pairs will stall around the same time.
I’m also quite intrigued how the U.S. indices have managed to correlate with the dollar and I can see this continuing over the coming week. This coming week does appear to be promising some coordinated moves in both the dollar and the indices.
As I have described the Europeans, the Aussie has joined the European bunch in a similar outcome. I’m not sure whether the barrier in USD/CHF will mean much to the Aussie, but if you can read the wave structure – even match potential similar momentum patterns, this could help the process of identifying stalling points…
USD/JPY performed really well too – but not quite in EUR/JPY. It’s the cross that has some uncertainty, and I’d suggest standing back while the other pairs develop. For USD/JPY, the perfect development does point to the targets I indicated yesterday. Thus, keep track there as I feel this could be a key day…