What a weird old day… GBP/USD did a mini-repeat of the collapse, USD/CHF whipped higher to reach the next intermediate projection target while EUR/USD – normally the leader of the pack – slipped lazily below 1.0859 in a dreamy haze and then suddenly woke up and whipped up higher. I guess there was a degree of correlation in terms of direction, but the degree of the moves were totally haphazard. I assume that some sort of fundamental catalyst prompted the move and tends to suggest further entertainment today.
Even USD/JPY saw the break above 104.47 that signalled the rush higher – and even sharper decline. Thus, the major dollar-currency pairs are looking good for another push. If there could be any problem, it could be in USD/CHF. This is down to a mini-minor wave ii that may provoke a complex wave iv. Therefore, until this potential snafu is denied, I’d suggest taking care. Watch the lower degree development to determine whether the correct size waves are developing as they should…
I also note that the 4-hour price equilibrium clouds are dollar supportive but actually testing the cloud. If the above description occurs, then we may well see price oscillate around the clouds… Given that AUD/USD appears to be more buoyant than I expected, it may well imply the same.
Finally, just a note on EUR/JPY: The triangle that appeared to work so well – even stalling at the lower end of the range in the wave ^e – well it appears not to have been a triangle although it looks like one. That should suggest losses.
Take it stage by stage to identify whether we can still see an immediate trend – or just a consolidation…