Over the weekend I went through the analysis and it looks like a rather difficult start to the week. First of all, in GBP/USD, I took an alternative look at the structure from the 1.3000 low. Lo and behold, I used a limited Wave i and Wave ii and worked through to the 1.3385 high to complete a 5-wave rally to complete a double zigzag from the 1.2440 low – or a zigzag that could be a lower degree Wave i. It’s possible because EUR/USD appears to be looking to complete a 5-wave rally and followed by a pullback and a final 5-wave rally to complete a triple three. The alternative is a potential expanded flat.
Hence the heading is a difficult start to the week.
USD/JPY has the potential for a deeper Wave -b-/-iii- or a direct move up to the Wave -iii- and upwards. USD/CHF is pretty much the same as USD/JPY. It has the potential for both sides of the market.
In the down-under pair, it appears to have a more direct decline.
As for the Cross, EUR/JPY has broken below the rising channel. With EUR/USD potentially having two options, it’s rather difficult to judge the early stages. Equally, we have a possible limited pullback lower in USD/JPY – or a direct rally as mentioned above.
It looks like a tricky day. Take care.