Dollar Losses Ahead

The day began looking as if we’d see consolidation but ended up slightly differently. Well, USD/CHF did work out almost point perfect in a consolidation but there was little else it could do in that position. In EUR/USD and GBP/USD the will was there but the upside failure (even if GBP/USD made a glorious effort towards 1.5391) followed by the new corrective lows broke the potential for the sideways move. Hence the subsequent direct gains.

So we’re one step closer to the next higher wave degree targets… and that’s the challenge for today. The immediate problem I see is that the follow-through is unlikely to be direct and I could imagine that this may last into European time – if really slow even into N.A. time. So best still focus on looking for signs of the Dollar topping out in this correction and for the next leg to develop. Whether this ends today or on Monday is something we’ll have to tackle as this all develops. However, I reckon we’ll see them today with the projection targets pretty well set as detailed in the past two weeks’ videos.

The Aussie bottomed out a little higher than expected but certainly overall in the right area so now we need to follow the rally. Like the Europeans the risk is for early consolidation/correction but basically we should be looking for higher levels later.

The JPY pairs… Eureka! At long &%4@!! last… Still, EUR/JPY may not evolve quite as quickly as USD/JPY because of the expected strength in EUR/USD so do be aware of the cross being rather choppy and possibly even range bound. Once EUR/USD reaches its next larger target it is due a deeper correction. At that point we should find the cross begins to accelerate lower.

USD/JPY … well, it’s rather in the same position as the Europeans at this moment. I can see a correction and them follow-through lower but I’m not expecting a repeat of yesterday’s blockbuster day.

In summary, we should see a quiet start following which the Dollar should then see losses all round…