That was an interesting day. I knew there was going to be some difficult development, even conflicting from time to time. Barring GBP/USD, the other 3 majors basically managed to do what I had basically looked for – or at least the general type of development - and this has kept them on the expected outcome. There are still further swings to go. I’m not sure that we’ll manage to squeeze the rest of the job today and more likely it will be early next week.
GBP/USD… There is still something wrong… I’ve been looking at the development from 1.2109 – way back in March and also the development from the 1.2811 low. I’m not particularly comfortable with either of them – but in a structural basis there may be a risk of a 3-wave move higher. Therefore, we'll need to take things carefully given the broad swings expected in the other three.
However, this is a tentative outlook…
EUR/JPY managed its expanded flat that was followed by a second zigzag. This should imply a reversal but given the basic correlation between EUR/USD and USD/JPY I suspect this will mean limited losses and more a mini-sideways move…
Finally, the Aussie saw a decent decline. The two scenarios of either a deeper pullback or a deep Wave b/v remains. Keep track of the areas that need to fail…