Gosh, the market loves to make things difficult. Clearly, we’re at the early stages of the Dollar rally and we have quite some way to go but we should see limited corrections and – at some point – we’ll begin to see the rally accelerate. Certainly, the Asian centre normally provides limited moves and I suspect we’re going to see a pullback lower first. Once that has been completed the Dollar upside should begin to see that acceleration. Both EUR/USD and GBP/USD are in this situation.
I’ve taken a different outlook for USD/JPY. I doubt we’ll see acceleration but the risk of a triangle – or just a 3-wave rally. This should also see USD/CHF pushing higher…
I’m debating whether the Aussie will drop lower – or a final new high before losses begin to develop. Take note of the break level as I’ve mentioned but I doubt we’ll see that breached.
As for EUR/JPY, we should soon see a high for a reversal. Ideally this should be a limited break above the current high for a reversal lower… Let’s face it, EUR/USD and GBP/USD are likely to see decent losses over the day.