In fact, I realised that I made a mistake early on after the 1.1816 in EUR/USD and that the 1.1335 low was the final low… Hence, I was rather cautious yesterday because we were seeing a corrective development. We have seen USD/JPY complete the expanded flat. I would like one more blip higher in USD/CHF – but a limited follow-through for a reversal to the downside and that’s the same thought for GBP/USD. By the time I have written the report, we should have seen all 4 majors completing their respective development.
So we really know what’s going to happen – a correction lower in the Dollar… I suspect this will be a modest correction rather than deep. We also have a pair – USD/JPY that has a limited downside that could provide the clues for the other pairs. So far, EUR/USD has formed a 5-wave move and the correction lower. This should also spur the creepy crawly EUR/JPY to generate a rather ragged bullish development – perhaps the potential for an expanded flat at this stage.
That AUD/USD has been slowly edging higher – contrary to the other pairs – has been quite exceptional but this is also in an expanded flat so now we should now have all $$ pairs back in line together…