Friday wasn’t a good day. Both USD/JPY and USD/CHF made new highs while EUR/USD extended losses and GBP/USD also corrected higher. I can cope with USD/JPY and USD/CHF through an overlap in a Wave [v] from 112.52 and 0.9704 respectively. I could even consider stronger gains in USD/JPY but I can’t with USD/CHF. I took another look at the drop from 1.0343 and there’s no way it could be considered an expanded flat down to 0.9421. Therefore, I tend to prefer losses in these two pairs – once they’ve confirmed their highs – but then we have all four majors pointing lower… except if they morph into triangles. So we should take care as the week begins to judge how the four develop.
Indeed, as I write, USD/JPY – after the election – there may be a chance of gains. So if this occurs we should follow the trend. In USD/CHF, my lower degree charts (below daily) have suddenly lost its history. However, I feel that it should cap very soon. I hope this gets resolved soon…
Now, the interesting puzzle in EUR/JPY is now impacted by USD/JPY – that appears to suggest gains – should see the cross decline and that implies a bearish EUR/USD. Thus, it’s rather a tantalising situation and therefore also needs some due care and attention…
Equally, AUD/USD has a similar situation with a line that is drawn at 0.7779. This must support to see gains else just collapse…