My goodness, this market loves a ride and I don’t think it’s over. The key market for me is USD/JPY. Towards the end of yesterday it approached the break level by one point. As long as that extends losses we should do well. I was a touch concerned over the decline in EUR/USD but it didn’t reach the 1.1509 low. This tends to suggest that it’s going straight back higher. Equally, after an adjustment, USD/CHF rushed higher to a new high to create a bearish divergence. An expanded flat I suspect…
All of these three pairs have that potential. Ah, you may say, “what about GBP/USD?" It broke to a new low. However, that formed a Wave i and Wave ii and followed by a Wave a. This should see a deep-ish pullback but not a new high.
That leaves AUD/USD looking downward to the limit of an expansion – or just a rally back above 0.7445.
That just leaves EUR/JPY seeing minor swings and consolidations as EUR battles against JPY… Doesn’t look like a day to trade the cross…