I didn’t like yesterday… The lack of gains in the dollar was particularly frustrating. However, I’ve noted that USD/JPY has almost reached the extreme of the pullback – only 13 points above the downside break level. The Aussie is just 20 points below the Wave -iv-. The Swissie saw a new low – a final zigzag in a triple three (although it was a rather difficult development.) With a minor adjustment, EUR/USD appears to have seen a Wave b/iii so GBP/USD copied its erstwhile continental buddy.
This seems to have created a quorum…
This seems to be correct because EUR/JPY broke the expanded flat barrier so either EUR/USD has got to go down faster than USD/JPY can rally. Given that USD/JPY will need to build foundation waves there’s more downside risk in EUR/USD that should see the cross continue lower…
After a couple of days expecting dollar gains, I‘m pretty sure now that we will, at last, see the dollar resume its rally.