There were a few tricky bits to the reversal but overall we are now looking for the dollar to make more headway. Even then, while we have seen some steady dollar gains, we’re also coming to the end of some 5-wave moves. This should basically see follow-through but then a pullback to the downside. I suspect that will occur over the latter half of the day. Right now, we are expecting some minor corrections in Asia but not too deep, before we see that follow-through.
Perhaps USD/JPY can make a better case for a more prolonged rally but not particularly robust. Basically, we have seen a Wave -a- and Wave -b- and followed by an impulsive rally. Basically, we’re halfway through so in many ways it will be similar to the other pairs. However, once it has found its high it will form the Wave -c-/-i- for a pullback in Wave -ii-. In USD/CHF we should hopefully see the same follow-through and later pullback.
There may be a modestly robust decline in GBP/USD. Certainly, it fought to keep itself holding to a sideways range. As long as is sees some decent losses by European trading it should maintain the downside. The only risk is that if it fails to see that drop there may be one more blip to the upside before the final reversal.
EUR/JPY should still have some downside and then offer the baton to the next wave degree and probably driven by EUR/USD.
The Aussie appears to be heading for a reversal – although momentum has not signalled any reversal. Best take care but, at some point, we shall likely see a reversal higher.