There are still maybe some minor risks of an initial dollar dip in the early stages but this should soon turn around. However, not all of the pairs are in sync. EUR/USD may see a minor new high for losses down to reach the Wave v. At the same time, we are likely to also see USD/JPY reverse lower. With both of these pairs declining together, EUR/JPY looks like a pretty good outcome.
With EUR/USD moving lower, USD/CHF should be heading higher and over today and probably tomorrow, to form the (blue) Wave a/iii.
The key puzzle now is down to GBP/USD. I’m pretty cautious now in this pair. After week’s break, it’s very difficult to go into every corner to process a large amount of data. I am looking at a potential new high and reversal to copy EUR/USD. This is going to be a rather difficult development now due to the need for dollar gains – but then a deeper pullback. It may be best to stand back in this pair just to get a stronger idea of what the pound will do.
Finally, we still need a new high in AUD/USD to complete an expanded flat. Once seen, the downside can resume.