The general structures across the pairs appear to be coming together nicely. Yesterday’s dollar lows are now due a pullback and it’s just a matter of identifying the depth of this correction through the 4 majors in particular. We have some decent clues and of course, limits that will break the structure, not that I expect that to happen.
One particular point I noted was in GBP/USD, having made a new high and a reversal, it actually reverts back to the original structure. Prior to that I was counting for a triple three and noted that there may be an argument for it to be a long 5-wave rally. However, yesterday’s new high and reversal broke that structure. Thus, I am reverting back to the triple three. In this way, all 4 majors have a general correlation to complete the final legs.
So today should be a corrective day. How complicated, or how swift or slow the development will be is an unknown. It could just be quick but alternatively complicated. However, I don’t think it’s going to be particularly deep.
In EUR/JPY, it looks like a slow start to the day with a period of consolidation, but overall bullish. Most likely it will be USD/JPY that drives this because it has a slightly deeper potential in its recovery. EUR/USD is more likely to have a shallower pullback.
The Aussie, now due a pullback, modestly deep (within the 5-min chart) but overall still remains on a bullish path.