Dollar Due For Correction

The market heard my comment about “my pace” and quickened its progress slightly, more thanks to a shallow intermediate correction in EUR/USD and GBP/USD. Thus, all three Europeans lost out against the Dollar and there still seems to be further to go. However, don’t get too carried away with solid Dollar gains quite yet. I do feel the market’s “pace” will quicken but not until a more modest correction lower. So basically in the Europeans it should mostly be a steady day without any big swings or surprises.

More, the Aussie has continued to bug me. It certainly has its own “pace” slow and cumbersome when the sun’s shining but awkward and clumsy when cloudy. It has fallen short of targets, marginally exceeded, retraced shallower than expected and then more. I have come down to considering the sharp decline from the 0.9665 high and that we have not actually completed this wave. If I’m right in this outlook then we’re in for further choppy trading but this time hopefully with valid downside projection ratios and subsequent pullback. The upshot should be some rather messy and whippy moves so take care.

USD/JPY, well, the term “my pace” could quite easily be given to this pair – and EUR/JPY. I began to get bullish for USD/JPY, then considered a more bearish alternative. Neither side really followed through. I do think we’re closer to a resolution and perhaps today will provide us with the final clues to feel more confident. Certainly, in USD/JPY there are now much stronger and defined break levels that would confirm one way or the other.

As for EUR/JPY, the basic direction remains lower but still in slow-motion mode. It’s a bit of a painful process but bear with it. Probably by next week we should see this large consolidation complete and the next trending move develop.

Thus today should be another steady day but the Dollar correcting lower by the end.