We appear to see the dollar reverse back to the downside. There is one exception and that’s the contrarian USD/JPY – but that has been known for a while. There is a risk of one more drop to a marginal new low but overall it should be looking to the dollar upside. However, I can’t see a strong rally because we need the bullish foundation waves to develop.
Other than that, EUR/USD has turned higher. We may need a marginal new low in GBP/USD. USD/CHF may well need a final 3-wave decline before heading back higher. However, in this development, we’re looking at corrective behavior and that is always the more difficult outcome. There can be some pretty awful complications at times – but at the same time – both EUR/USD and GBP/USD are looking at a Wave -ii- that could have the potential for a deep Wave -ii-, USD/CHF and USD/JPY are more likely to have a limited range so it’s going to be a difficult corrective development.
The Aussie seems to still need losses but later for a correction higher. In EUR/JPY, perhaps we have a clue for the depth of the correction in the majors with limited gains in USDJPY (most likely) while EURUSD should provide a decent push higher but in the cross, it seems to have a modestly limited pullback.