Apart from the additional high in EUR/USD, basically we managed to navigate the final legs in the dollar. As far as I can see, we’re all done and good. From the dollar lows – and through a slow market due to the U.S. holiday - we have basically seen some constructive dollar gains. This should now see some dollar losses today. How deep? Yes… Good question… The answer is anywhere between 5.6% and 100%...
Most likely, we’ll see the customary quiet Asian session that could even stretch into the European session due to the uncertainty of how North America will react to yesterday’s move. Overall, once the market has resolved the depth of the correction I suspect we’re going to see a firmer directional move.
This should give EUR/JPY an opportunity to push higher but I’m not expecting a strong move. Therefore, keep an eye out for reversal signals.
As for the Aussie, it decided to go for the Triple Three and that means it’s in line with the Europeans. However, don’t expect a sudden rush because we haven’t yet completed a 5-wave move. That suggests the potential for a consolidation…