We’re seen some solid dollar gains over the second half of the week. There are probably a few pairs that may see a minor new Dollar high but frankly we’re now in need of a pullback. I’m seeing the potential for an expanded flat in GBP/USD and considering the rather lacklustre USD/CHF the correction appears to be relatively limited. Perhaps too, we could see some consolidation.
EURUSD saw a pretty rampant decline – just as the doctor ordered – but this pair does seem to need a minor new low before heading back higher. This is pretty much similar to AUD/USD that now needs a new low before a correction higher.
This leaves USD/JPY rather lost. My count here suggests a stronger Dollar. However, if it breaks above 111.80-85 it will suggest gains. Failure will require a minor new low. Best look for the extremes of the ranges and follow the breaks. I am suspecting a move lower after adjusting the structure…
When considering EUR/JPY, I feel that we have found a low – or will see a minor new low before a recovery. As mentioned, EUR/USD appears to need a new corrective low for a pullback while USD/JPY may even be in a consolidation – but the outcome should be for a pullback higher.