EUR/USD Forms Bearish Foundation Waves

Published 11/06/2018, 03:00 AM
Updated 07/09/2023, 06:31 AM

The good news is that EUR/USD has formed the bearish foundation waves. The bad news is that GBP/USD opted to form a triple three. However, we may have just seen the final high – but could be just a bit higher. This will suit USD/CHF as it should be heading higher and – after a long sideways move – I suspect we’ll finally break above the 113.39 high…

Therefore, over the day we should be looking for a Dollar bullish rally.

Having said that, GBP/USD – having been a pain in the backside – it will then need to develop the bearish foundation waves before any stronger decline. How this balances through the pairs is rather difficult to judge the correlation through the structures.

I’m slightly uncertain on EUR/JPY having seen a (potential) double top. We may just see losses – or alternatively a new higher for a reversal lower. Note that USD/JPY must break above 113.39 to provide the “oomph” to generate gains while EUR/USD should – at some point – turn lower…

I’m still looking for AUD/USD to move lower – and I’d like to see a break below 0.7181 to confirm…

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