The dollar actually managed to break above the recent highs. I looked at the dollar index and basically it has not yet satisfied alternation – and that’s actually quite a deep pullback. Now that we have seen further dollar gains, I suspect we’re going to see a shallower follow through and reversal. In EUR/USD, I suspect a stubbier Wave (c)/(i) and also USD/CHF. Once they have formed these targets it will imply a deep Wave (ii). However, I can’t see this happening in GBP/USD. It now needs to complete the current decline – and that suggests deeper losses. Perhaps we shall see a consolidation at some point to let the others look for a pullback lower in the dollar.
I’m cautious in USD/JPY – a potential expanded flat – but frankly, in the 5-min market, it doesn’t really have too much say to be honest, so I’m still rather cautious in this pair. EUR/JPY is finely balanced and has choices on both sides of the current price. I’d suggest caution here today.
Finally, the Aussie needs to see a deeper pullback from the 0.7347 low before a new low.