It wasn’t quite so much of a bit of a mixed bag yesterday as I expected. A couple of errors provided, within the previous Dollar gains – a lower degree development that formed the larger degree and that allowed a deep pullback across all the pairs. I think we have found the highs – but we may need to see minor follow-through on the Dollar downside – but overall we now have a solid road in the next Dollar rally. This will probably see the Asian and European sessions forming the Dollar bullish foundations waves – and once seen, we can get back on the Dollar high road.
The deep corrections seen, it allowed the Aussie to rise once more to form an expanded flat to replace the earlier Wave [ii] to reach the 0.7330. So like the majors, it will need to form the bearish foundation waves for losses.
The odd one out was EUR/JPY. However, I am a little puzzled with the structure that seemed to suggest an expanded flat within an expanded flat. It doesn’t appear to be valid but I couldn’t find any other solution. I’d suggest taking care with this… We may just see some further consolidation depending on the balance between USD/JPY and EUR/USD…