Yikes… What a strange day. For the most part, the general development was broadly in line with expectations, some pairs with slightly firmer projections than expected but it was EUR/USD and USD/CHF that clearly had some protrusion thrust up their backsides. It really is these two Continentals that have caused the structure to go out of whack. USD/CHF is most likely now in a daily corrective pattern – but which should still be bullish. EUR/USD still has a potential impulsive move in it but yesterday’s whiplash has reduced confidence. I could accept these but when I look at the other pairs, particularly GBP/USD, it tends to conflict with the other two – but then it did “it’s own thing” yesterday and could remain on its own track.
When I look at EUR/JPY, that I feel needs to reverse yesterday’s initial decline and then deep recovery, it suggests further losses… but USD/JPY appears to suggest moving higher. The conflicts once again fail to generate a great deal of confidence.
Meanwhile, the Aussie saw the expected losses to the general range of targets, and happily to my preferred target. This seems relatively straightforward, required a deeper correction and later reversal back lower.
Overall, I feel the currency pairs in which I have greater confidence are GBP/USD and AUD/USD, have slight misgivings with the USD/JPY / EUR/JPY mix and my “wish” is for EUR/USD and USD/CHF to reverse yesterday’s whiplash – although I don’t have enormous confidence and therefore it’ll be best to take care.
On the positive front, the decline in U.S. equities has been just what the Harmonic Elliott Wave doctor ordered…