I had high hopes that we could have seen some constructive development yesterday. Actually, in some pairs, they’re doing quite well. The real bugbear is EUR/USD. It has started on the downside but appears to have a risk of a complex correction. However, perhaps it’s not such an issue because USD/JPY appears to have the same issue. USD/CHF appears to have formed the lower degree Wave iv and Wave a/v and thus we need a pullback lower and then further gains. That GBP/USD has completed a Wave -a-/-v-, it suggests pullback higher. Once the pullback has been seen the downside does have potential for some further losses.
However, just for this session, I suspect we are going to see a rather ragged development – mostly consolidation – and likely a rather slow and difficult day…
That leaves EUR/JPY that has seen a 3-wave pullback – which tends to have a risk of a consolidation. It doesn’t generate great confidence in establishing targets…
Perhaps the only pair that could complete a move – or part of – is AUD/USD that needs further gains today…