It has been a rather tricky few days although mostly contained within my expectations. Have we seen the dollar lows? Certainly, USD/CHF appears to have found its low – but I can’t say that it’s a certainty. USD/JPY only requires a short trip to a minor new low. EUR/USD has developed in a double zigzag only – so there is a risk of a new corrective high and the Wave x is waaayyy down lower. While I caught the top of GBP/USD yesterday, there’s still plenty of upside to invade.
Therefore, we still have risks and a fine balance between the upside and downside – and apart from USD/JPY, there is still potential for another zigzag… Best take it easy and wait for a decent trigger that will provide the dollar bullish reversal.
EUR/JPY appears to be settling in for the downside but we all know how tricky the cross can be. I have a Wave (i), Wave (ii) and Wave (a) from the 132.42 high but there’s room on the upside and down. It’s not easy – the extreme pullback is at 132.19.
Perhaps, of all, it’s AUD/USD that approached a similar extreme Wave (b) by 3 points. We do know the limit here and therefore we can plan a trade more easily…
It’ll be best to be cautious today and confirm the dollar reversal.