3 reasons why gold prices are surging again
It’s never easy when you’re faced with a shallow Wave (ii) – you know, something like 14.6%. Even I was a little concerned but frankly the structure just couldn’t absorb a break above 1.3617 in GBP/USD. So, the dollar has taken a jolly jaunt to the upside. Most likely we’ll see a pullback lower over the Asian session and into the European, but at some point we’ll need the Dollar to do what it did yesterday… Perhaps the risk may be a complex consolidation that will keep us moving sideways.
USD/JPY hasn’t completed the current rally from the 109.15 low but doesn’t have much more to go before lurching back lower – may be even an expanded flat.
EUR/USD saw some decent losses – but just in the lower degree – and that could see a deeper pullback. That should see USD/CHF complete a triple three. Once that’s done and dusted we can get back to the Dollar upside. GBPUSD could follow the same route but the upside has a shallower cap so take care.
Equally, the Aussie has done one of its sharp losses that now requires a pullback before getting back to below yesterday’s low.
As for the Cross – EUR/JPY – I suspect a rather limited range for the most part…