I was shocked by the minor Wave (ii)’s or Wave b/iii’s in several pairs. Well, 27% is kinda ok but (if I have the right Wave (ii) in USD/CHF it was just 7.4%.) Having said that, particularly in GBP/USD, the massive cycle from the 1930’s, we should begin to see some acceleration lower. Even so, I was quite shocked with the USD/CHF percentage. This should retain an underlying dollar bullish outlook but that doesn’t rule out fairly deep pullbacks during the process.
As far as I can see today, we should continue on the dollar bullish path – with the exception of USD/JPY. So far we appear to have seen a double zigzag and we need to complete the final 3-legged that should then trigger a reversal higher.
That EUR/USD saw the unexpected losses and USD/JPY really not trying to push too much on the downside, EUR/JPY had a strong bearish day. Over the next few months, we should see some decent losses.
Even the Aussie took the leap of faith on the downside and has seen some decent losses – and there should be more to go.