Was it the heat across the northern hemisphere that made yesterday’s development grind so slowly and painfully? It took the full 24 hours to finally approach the final high in EUR/USD and also AUD/USD that completed its expanded flat. We may have even reached the high in GBP/USD after a prolonged sideways consolidation – but I suspect we should see just one more blip higher. And what of USD/CHF? Blah… Down a bit, up a bit – and back down a bit. Could we have seen a final zigzag in USD/JPY? I’m not too confident of this pair and it needs to start making stronger dollar gains… I tend to feel that we’ve probably seen the final low.
So, for the majority of the pairs we should begin to see dollar gains – although do still need to take care in USD/JPY because there is a minor risk of a final zigzag to complete a triple three. These are the rather annoying uncertainties that make life difficult.
As for the cross, EUR/JPY has formed the Wave c/iii and Wave iv. There’s also the potential for the Wave iv to develop as a complex correction but if I am to choose, I go for a triangle. With EUR/USD expected to see losses and an uncertain USD/JPY, it does, at least, suggest the potential for the complex correction…