I initially wanted to write that we “should see Dollar losses.” That’s partly right but there are some – well, two pairs that suggest they still need further Dollar gains. Yes, we could see an early Dollar pullback lower in the Dollar but it’s pretty limited. Therefore, we’re going to have to work through the pairs piecemeal.
Basically, EUR/USD and GBP/USD should see a Dollar pullback. USD/JPY will initially make a new high but then suffer quite a deep pullback. USD/CHF may see a minor blip higher – or it had found its high and will move back lower…
Strangely, it seems that the Aussie wants to push higher over the day – although there’s a risk of an early pullback.
Finally, in EUR/JPY we have barely any room on the upside – but could be seen in the early stages, but once USD/JPY suffers its pullback we should see a rather ratcheting, probably messy development with EUR/USD expected to push higher while USD/JPY does the opposite. It looks like a rather messy outlook in the cross…