I hadn’t considered a new dollar high on Friday, but we should see a minor new high on open. We may have also seen a low in USD/CHF but, just 3 points lower will take us down to below 0.9716 – such are the limits. We have also seen a high in GBP/USD with just 15 points available. For USD/JPY, I suspect we have found the low, but it’ll be prudent to allow a minor new low.
With those flimsy follow-through’s higher, we should be heading lower with the right honourable Prime Minister (elect) providing the way. Having said that, I called the loss towards 1.20 and perhaps lower in GBP/USD back in 2014. Already, I know where the Wave (iii) range will fall.
EUR/JPY may have topped out but there is a risk of a limited new high to complete an expanded flat. With EUR/USD seeing a limited push higher on open, as mentioned above, and a USD/JPY that could be rather uncertain but over the day it tends to suggest losses.
Over the weekend, I went through AUD/USD and discovered I’d made an awful mistake in suggesting we had seen the (purple) Wave -iii- and Wave -iv-. We are seeing a Wave (b). Whether it sees a minor new high or just direct losses is something to allow for – but overall it should be bearish.