The market clearly needs a catalyst. Yesterday’s sideways trading drew yawns throughout – but there was an exception that was GBP/USD. It surreptitiously poked back higher in an overlap that now needs further gains. Having said that, we appear close to a pullback lower. At the same time, EUR/USD baulked against the downside and decided that a broad set of swings took it sideways… Hence, USD/CHF basically decided it didn’t want to really break any limits and sat back down in protest. All hail sleep…
I was in two minds in USD/JPY yesterday. I still have some reservations although there is a basis for a firmer follow-through higher. I estimated a Wave -b-/-iii- pullback to the 50% retracement where we have some support and this is where it stalled.
We’ve seen a Wave (a) and Wave (b) in AUD/USD and that implies further losses.
Overall, it seems to me that we need the dollar to take the lead now…
It’s just EUR/JPY that needs to resume losses from within the 136.30-136.63 range…