Yesterday was a messy old day – rather strange to me. EUR/USD and USD/CHF both formed 76.4% and 64% projections respectively in their Wave v’s. I was rather shocked with the 76.4% high in EUR/USD because it was the last leg of an expanded flat.
USD/JPY finally took the sky. However, we don’t seem to have very much upside so watch for a bearish reversal.
Meanwhile, GBP/USD took the day as a sloppy, slow and ragged development. We have limited room on the upside but stronger losses now on the downside that will need two wave degrees to work with. At this stage, it’s rather difficult to judge targets so we’ll have to work through the lower degree and then the higher degree developments. Clearly, this could provide some deep-ish pullbacks.
That EUR/USD decided to form a 76.4% projection in Wave v, along with the gains in USD/JPY, it allowed EUR/JPY to see a deeper Wave v. Tiresome, but we should be looking to the downside now.
As far as the Aussie, it knew it had to go lower and we’re still on the downside track but not for too long to reach the 0.7070-53 area – but then take care.