Yesterday saw the dollar lose out as expected – although it took most of the day to complete the pullback. This allowed USD/CHF to break below 0.9901 to then complete a triple three and in EUR/USD the deep pullback I expected. In GBP/USD I was in two minds – or really two alternatives – that actually saw a deeper pullback that then confirmed the 1.3083 low was the Wave -i- and the pullback to 1.3153 to form the Wave -ii-. The only pair I floundered on was USD/JPY. On Thursday I had considered the potential for a triple three rally. I was in two minds about whether the rally was 5-wave or 3-wave – but took the wrong decision.
The outcome of the 4-majors now brings us to the dollar upside once more…
USD/JPY has completed the foundation waves already – as has GBP/USD. It’s just now that EUR/USD and USD/CHF – having seen stronger losses - that now need to form their foundation waves for the Wave [i] and Wave [ii] before stronger dollar gains.
The Aussie appears to have remained below the 0.7416 and thus should see losses along with the pack. As for EUR/JPY, the strength of yesterday’s rally in EUR/USD provided a deep pullback – so now we should see the downside resume once more.