Yesterday did see some directional development but there were a few pairs that really decided to have a nap. USD/JPY was quite forthright in pushing higher. However, today should see the dollar make some decent gains. Therefore, we should see AUD/USD make losses – but not off the bat. It does need a pullback before deeper losses. Equally, EUR/USD began to lose its way with a sharp decline and then a deeper pullback – and that should now see those losses. USD/CHF played the same game of up-a-bit, down-a-bit and snooze. However, it does now have the right outlook for a bullish move – perhaps even towards the 1.0056 high.
GBP/USD completed a Wave a and then a pullback in Wave b. That sets the scene for deeper losses – and about time too. With EUR/USD now embarking on the downside we should see EUR/JPY edging lower again. I suspect EUR/USD will have a stronger move compared to USD/JPY but there could be some consolidation on the way.