I had been looking for some decent pullbacks, but with USD/JPY looking bullish, USD/CHF bullish initially – possibly a shallow pullback and later further gains. We have GBP/USD still needing losses. What of EUR/USD? Well, there is a risk of a triangle but with the other pairs still looking for dollar gains, it tends to suggest we shall continue the dollar strength.
While I have made these outlooks, there will be some pullbacks – probably minor as the lower degrees through to the higher degrees. One possible chance of a mildly deeper pullback will be in USD/JPY once it has reached the (green) Wave (a)/(iii). Ideally, we should see a pullback and then we’re going to need to take care with the general development matching across the pairs.
The Aussie is approaching the (brown) Wave iii and this will give us a dilemma – shallow pullback and a Wave b/v or a deeper Wave iv? We’ll have to manage that as we go through.
Finally, EUR/JPY is rather difficult to judge. We are likely to see USD/JPY rallying while EUR/USD declining. The range we have seen is pretty shallow but it’s best to wait for breaks of the range.