Pointing To Dollar Gains?

Yesterday’s summary on the outlook for the day proved accurate: “I’m not quite so certain that we’re going to get a particularly aggressive day today. I do see some follow-through strength in the Dollar but not so much that it’ll continue its rally directly.”

Now that has occurred, the risk of a more directional move is much stronger. From what I can see all three Europeans now appear pretty much in the same position in terms of that potential. Having said that, the initial requirement is for a platform to be built that will provide the springboard for the stronger follow-through. Be prepared for Dollar gains, but don’t expect the world in terms of the strength seen.

The Aussie reached my corrective target area… kinda… but not quite in the manner I had been expecting. The fact that it made a minor new low and recycled higher was not one of the options I considered. Life sucks… That’s the nature of the myriad of corrective structures that can develop. However, we should see the downside extend a bit further, and here we need note the projections targets from both long term and short term wave degrees…

The the USD/JPY fell short of target… which was exceptionally annoying. Ok, it was “only” 8 points but that’s a bit too much for me. I’ll stick with the bullish view for the moment, although the correction does have potential to deepen a little more. However, this shortfall is something of which we need be aware in case it follows the same course as the EUR/JPY – that of an irregular triangle. I have opted to remain bullish down to how I see the EUR/JPY developing in conjunction with the EUR/USD (and that there should only be limited downside in this leg.) However, when considering cross-currencies there can be multiple scenarios, so this is something to watch with care.

Today should see Dollar gains, probably not too direct, but setting up on a platform for later gains…