Dollar Bullish Day – But We’re Moving Into A Reversal

Published 08/01/2019, 04:45 AM
Updated 07/09/2023, 06:31 AM

Yesterday wasn’t quite as I expected. For one, EUR/USD almost developed a triangle but it ducked out and has taken the GBP/USD route. Indeed, it looks like a pullback in Cable wile EUR/USD could see a little lower for a pullback.

USD/JPY still needs further gains to reach the (navy) Wave iii, minor pullback and then to reach the (blue) Wave iii. The next part will either be a deep pullback in a Wave iv – or a deep Wave b/v. Equally, USD/CHF needs a new high to form a Wave a/iii to then back to the Wave b/iii.

When it came to EUR/JPY and its expanded flat, it was quite a deep move lower. Therefore, USD/JPY needs to provide the oomph to see some decent gains while EURUSD should only see a minor new low – for a pullback that should help EUR/JPY rally back higher again.

The Aussie just needs a 5-wave decline to then revert back to the upside for a correction…

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