We’re beginning to get some dollar bullish traction developing. EUR/USD has completed its Wave i and, most likely, a Wave ii. There is still some upside to provide a triple three. However, from the other pairs we have USD/CHF almost at an extreme pullback and USD/JPY that has seen a sudden collapse at the end of the North American session. This tends to suggest that we’re more likely to see direct dollar gains.
This should see a solid follow-through on the dollar upside. As this rally progresses, we should eventually reach a point where we have a deeper pullback. This is not going to happen today but I just want to make sure that we don’t get too aggressive. Indeed, the range of pairs has different structures but this should provide a guideline as we move towards the dollar upside overall.
At last, EUR/JPY has finally topped out and along with AUD/USD we should see losses overall.
Thus, focus on bearish reversal indications on any pullback.