The rat was correct and we’re back on the Dollar bullish route. Having said that, we have been seeing some pretty strong development that tends to suggest a robust follow-through. However, the U.S. left us at a Wave [a]/[iii] and that’ll need a pullback but probably a modest one. In USD/JPY there’s a risk of a minor pullback lower to then see gains – and this could be the same in USD/CHF. However, over the day, the outlook should return back to the Dollar upside.
GBP/USD has been a bit tough. I’d like to think that we have seen the final high but I’m not exactly confident. As I write I have seen a shooting star reaching 1.3129. I suspect we shall see a bit higher too. We do have bearish divergences but ideally, I’d like the 1.3176 (+/-) pullback to see losses. However, it’s a rather contrary outlook between EUR/USD and GBP/USD… This could be a difficult development.
EUR/JPY has been seeing some decent losses but is now requiring a pullback – basically similar to EUR/USD. This will then continue the downside.
The Aussie needs a minor follow-through lower for a pullback…