I’m still quite astonished by the recent developments. Even EUR/USD managed a minor new high – once again. In fact, it is highly unusual. From there we have seen a 5-wave decline and a pullback so we should be heading lower again. The strange thing is that this will mean that USD/CHF is likely to have seen a high – maybe a minor new high. The pullback in USD/JPY was short lived so should be heading lower – and that will delight any fans of EUR/JPY once USD/JPY completes its pullback. So, over the day we seem to be looking for losses in three of the majors.
So what of GBP/USD? I’m beginning to think that we’re going to see the final “zag”. Certainly, it doesn’t seem to have a structure to see new lows at this stage. So once EUR/USD has found a low, we should see corrections higher in these two pairs.
In terms of the Aussie, I was mistaken. Yet another rally and that took some time to work out what happened. Well, that is a final zigzag. I think it’s done – but allow for a marginal new high. Therefore, we should be looking for losses.
Back to EUR/JPY, we have seen a 5-wave decline and it is now pondering in a pullback but over the day, particularly when USD/JPY sees losses develop. If seen with the expected losses in EUR/USD, it’s likely to see some decent losses.