While yesterday was a slow old day, as far as I can see we should now have seen the final dollar high – for now. This now requires EUR/USD and GBP/USD to develop in a corrective development while USD/JPY and USD/CHF should see follow-through in an impulsive move.
The balance between the two sets of pairs are slightly different – and it’s USD/JPY that will have a finite move at 108.11, while USD/CHF that has a more rough target. However, with luck, we should see them both finding a low around the same area for a reversal back higher. Both have seen their Wave i and Wave ii, so we’re looking for the follow-through lower.
The more complicated set is EUR/USD and GBP/USD due to the fact that they are forming a correction. At this point, we don’t know whether the recover will develop in a series of zigzags – or just one zigzag… If I’m to be bold (or stupid) I’d suggest a target area in EUR/USD to reach the 1.1530 – 1.1560 area while GBP/USD could reach the 1.2970 to 1.3135 area.
That AUD/USD finally found its (brown) Wave -a-/-iii- implies a pullback along with EUR/USD and GBP/USD. I’m not sure whether these three pairs will find a high at the same time – but the basic idea is that we have a rough and ready outlook.
As for EUR/JPY, we have found a temporary low but with the two sets of pairs generally being relatively correlated it tends to suggest a rather messy pullback higher…