Well, we did see dollar gains but it was hardly rampant. It actually looks as if we may see the same sort of start once again. Perhaps the soaring temperature across the planet has taken a toll on any enthusiasm. However, even if we have a slow start in Asia we should still see a later move higher. With GBP/USD having pushed above the 1.3159 – even by just one point – implies a follow-through but it shouldn’t be rampant. Us Brits can’t cope with high temperatures and it’ll soon reverse over the day. Perhaps that will be the trigger for all the majors to move back to the dollar upside.
Even then, when we have seen the follow-through to completion, it will actually require a pullback in a Wave ii. The only issue is how strong the Wave c/i develops and the depth of the pullback.
EUR/USD is a slightly more advanced having formed a Wave i. We may have seen the Wave ii but there is a risk of a deeper pullback before the dollar upside resumes. However, we’re going to need some care because EUR/JPY appears to be egging to see losses. The balance between the two intrinsic pairs will need some observance.
Finally, the upside down currency was puzzling me after suggesting an expanded flat. The deeper pullback and now rally has a potential to form that expanded flat. Thus, with GBP/USD expecting a new high along with AUD/USD, this may well provide the trigger for uniform dollar gains.