Yesterday did continue to see U.S. dollar losses but in the whole picture, it was USD/JPY and USD/CHF that went on an additional journey. Now we have completed the journey the outcome is pretty clear – U.S. dollar bullish. The only problem is that we now have to work through the bullish foundation waves once more and that tends to suggest a rather sluggish development. Therefore, I can’t see a frantic development – unless some event triggers a scare. Nevertheless, we should be able to look for U.S. dollar gains to resume.
Another pair that had a makeover was in AUD/USD. When the expected Wave iv broke higher I had to work out what had happened. Actually, it was pretty easy – but the development up to that point was so long past that it was difficult to link the higher wave degrees. So now we have a brand spanking new (purple) Wave -iv-. So even now we should be looking lower in the Aussie.
How things develop in EUR/JPY is less obvious considering the potential losses in EUR/USD and the rally in USD/JPY. I tend to think that we’ll see a new low for a pullback and later losses again…