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Follow-Through And Reversal

Published 07/30/2018, 12:04 AM
Updated 07/09/2023, 06:31 AM

Friday saw a very slow start, slower than I had anticipated, but finally managed to revert back to the dollar downside as I had expected. The start of the day seems to me – for the most part – a direct follow-through to see dollar losses. Ideally, EUR/USD should provide a stronger move than USD/JPY and USD/CHF. That said, we may just see a soporific start to the week by the end of the week we should be turning back to the dollar upside.

GBP/USD has seen a rather complicated decline and I’m mixed between having seen a Wave i or a move to the Wave b/iii - but that will need a robust Wave c/iii. At this point, it’ll be probably best to remain neutral and note the next break.

EUR/JPY has reached the Wave a/v and that suggests a deeper pullback in EURUSD versus USDJPY that only needs a minor follow-through lower. This tends to suggest a rather slothful USDJPY that should later reverse back higher.

As for down under, it looks to me as if we’ll see a pullback lower and then a second rally.

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