That wasn’t meant to happen yesterday… Additional Dollar losses. I was always looking for GBP/USD to be corrective – but I had thought that in EUR/USD we were seeing an impulsive move but the follow-through higher did not provide alternation all the way through from the 1.1301 low… There’s still some risk of initial Dollar losses but once this finds a high the outcome looks pretty much as I expected. We’re certainly seeing hourly Dollar bullish divergences.
There can still be a final leg(s) to see Dollar losses but by the end of today I suspect we’ll be grappling with the Dollar bullish foundation waves…
This makes sense in terms of AUD/USD still making additional highs although there’s very little wriggle room on the upside. Therefore, we’re still getting a Dollar bullish outcome.
Overall, once EUR/USD has topped out we should see EUR/JPY reversing back to the downside…