All was calm. Then it wasn’t. It has provoked a minor detour but one that seems to be manageable. Probably, the key to confirm what has occurred lies in both EURUSD and GBPUSD. Firstly, it would seem that EURUSD has a stronger 5-wave decline to the low but then required an expanded flat. This hasn’t yet been completed but should be resolved by the European session. The same can be said of GBPUSD. Therefore, we should later see the general move develop.
The same can be said in USDCHF but note the key support at 0.9641. USDJPY worked pretty well until the final moment when the Wave [v] stalled at 110.944 being an 11.5% projection. Oh… what a pain. Thus, USDJPY has formed a 5-wave rally and now needs to see a 5-wave rally to form a Wave [c]/[i]. Sounds easy except we have to establish the Wave [b] – and that’s the puzzle.
EURJPY reached my target perfectly – only it wasn’t in the structure I had expected. This could see the cross wobble a bit as USDJPY and EURUSD complete their respective legs. Most likely that will imply that the pullback in USDJPY should be short-lived. However, this does provide us with a general template to follow.
As for AUD/USD… well, AT LAST – we have seen a decent rally but should complete the current wave pretty soon. The problem then will be how deep the pullback will be… or are we seeing a triple three instead of an impulsive wave. Thus, we still need to be on our guard.