With the exception of USD/JPY, of which we had already known would rally and carry EUR/JPY along, the Europeans and Aussie basically had a rather relaxed day listening to the swing kings. This should change today.
The biggest surprise was USD/CHF that retested the 0.98361 high quite precisely. This is a rather strange development. I’ve counted it as the Wave EFC of an expanded flat but frankly, I’m pretty doubtful. Thus, I’m allowing for a possible overlap in Wave [c]/[v] that could edge a bit higher before reversing. However, it does have a rather extreme structural development – but that’s normal for the Swissie.
Otherwise, EUR/USD needs only one more blip higher and also for GBP/USD that is seeing lower degree bearish divergences. So these two appear to be generally correlated but I suspect it will be EUR/USD that provides a stronger move.
Referring to the comments above in USD/JPY, the outlook appears to be the exact opposite of yesterday’s development and that suggests that it will drag EUR/JPY along with it…
The Aussie has been doing what it does best – procrastinating – and may well continue but most likely to the downside – but best wait and watch for the next break.