Corrections can be pretty hairy. Certainly, from the EUR/USD and GBP/USD lows I hadn’t been able to resolve the pullback. Yesterday’s follow-through higher in both pairs – even USD/CHF on the downside – were not on my radar. Most of this is down to the lower degrees that can see winding moves that are impossible to judge due to the 1-minute development – and that takes far too much time to work them out. By the time I’d completed them, I’d be a day behind.
However, GBP/USD has only 65 points from the daily (cyan) Wave (b). In EUR/USD we have 96 points from the daily (brown) Wave -b-/-iii-. Most likely we have seen the top – or a margin above. It’s GBP/USD that has been providing the complications. I suspect one of two alternatives: that we have seen the final high – or we’ll see a deep pullback and a second rally that break above 1.3298 but then seeing a reversal lower.
USD/JPY still needs further gains. USD/CHF is expected to see limited losses.
Having said that we have either seen the high in EUR/USD – or a margin above – and the need for gains in USD/JPY, it does suggest that EUR/USD must provide the downside because we have barely any room on the upside in EUR/JPY.
Equally, AUD/USD has seen a deep, deep pullback and also barely any room on the upside.