To be honest, perhaps I should clarify the headline. There are some pairs that are beginning to do strange things – in particular in AUD/USD and – to an extent in EUR/USD and EUR/JPY is always rather trying.
Let’s start with USD/JPY that completed the expanded flat – almost testing the Wave -x- high. This should now see a final zigzag lower. That’s the kinda easy one although we’ll obviously have to navigate the development. USD/CHF saw a pretty firm follow-through to form the (green) Wave (a). So both of these pairs should see losses.
Then came the divorce. EUR/USD dropped below 1.1335 while GBP/USD spurned the EU and rallied. Actually, this is pretty clever. The losses in EUR/USD were corrective – therefore the low of an expanded flat. That will then see a 5-wave rally. At the same time, GBP/USD needs a deeper pullback to keep the balance of the ratios. Once EUR/USD tops out we’ll be back on the Dollar bullish road – but clearly, this isn’t going to happen all today.
EUR/JPY has become dizzy, rather like a toddler trying to write. However, I suspect that it may see lower before a further pullback but this is a rather difficult development.
The drunken Aussie… it makes gains then decides it wants to dip back lower, then back up again – and down… This is very close to being a possible descending triangle but the level that needs to break is in the report. However, at this point, there still remains the potential for an expanded flat… Take care…