I had hoped to have completed the pullback yesterday, but it didn’t quite manage it through yesterday. We need a little more downside in the dollar, not by too much. We’re even starting with pullback higher in USD/JPY to then see a final new low. Equally, EUR/USD should also see gains having seen a low in EURJPY. However, while USD/CHF may/should see a minor new low, but we should be alert for a reversal higher. The GBP/USD really didn’t make much of the pullback. Will that be the top or a second zigzag? I’m balanced in this pair.
So, probably into the afternoon, we should be looking for a reversal higher in the dollar to then continue towards stronger daily targets – although not over one day.
The Aussie has seen a deep pullback but really doesn’t have much room on the upside. Certainly, keep stops above 0.7045… We should see the upside-down currency moving back lower.
As for EUR/JPY, I am getting a little uncertain of the structure. I’ve attempted to get it right. Certainly, the ideal is for EUR/USD and USD/JPY to see pullbacks, and that’s my preference but I do find this rather conflicting. It may be best to wait until we have resolved this pullback and then for dollar gains to develop.