An alarm bell suddenly struck. I was clearly not focussing on the strength of USD/CHF from the 0.9421 low but merely following the development. The elevated price was far, far too high to be capable of reversing lower back to 0.9421. I had been adamant that the penultimate leg down to 0.94273 (on the 29th August) could not have completed a 5-wave move. On that day we had a sharp snap decline towards the low. Therefore, I used 25 ticks to form a bar. Towards the low we saw a Wave iii at 0.94351. The Wave iv was a 0.91% retracement. The Wave v was a 3.2% projection. Never in my years in these markets have I ever witnessed such a minute development…
However, this now implies that we are now taken on a very different outlook. Yes, we shall still need a pullback. Not today. Well, maybe later in the day. While I had been looking for a deep pullback, this has all changed. It will be a modest pullback. It has also implied that the adjustments in USD/JPY were not warranted. What we are seeing developing now is a Wave (a)/(iii).
So, for the most part – excluding USD/CHF, GBP/USD and AUD/USD – we should now see new dollar highs before a modestly deeper pullback.