It’s hardly been a frenetic market but it has been steady. From the Asian start, we are seeing pullbacks on the Dollar downside but there’s not a lot of room and by European time we should be heading back to the Dollar upside. I have to say that the GBP/USD triangle failed. It was quite clear by the general limits in a Wave iii were much too strong so I’m now working with a bog standard development. By the time the U.S. gets up, we should then see the stronger Dollar gains.
EUR/JPY appears to have completed a rather ragged triangle and that will see EUR/USD providing the oomph on the downside. This should see USD/JPY rather less bullish compared to yesterday. Ideally, we should see a decent decline – but just as a caution – I suspect this will form a Wave i and Wave ii and then possibly a strong Wave a – just to allow a pullback higher.
I had thought that we may have seen a break of the (cyan) Wave [ii] but it seems we are likely to form a 5-wave move to see losses well below the 0.7200 area…
Keep track of the early stages – but overall we should still be heading higher in the Dollar.