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Further Dollar Gains Expected

Published 05/02/2019, 12:26 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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AUD/USD
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EUR/JPY
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The development from the 1.1327 high was a one in a thousand. It had me tricked all the way through. Clearly, I now can see the strong 5-wave decline and the very deep pullback. At least, we can get on with the (purple) Wave -iii- and onwards. This should carry GBP/USD lower also. I am allowing for a final high in GBP/USD but overall, we should now be seeing a 5-wave decline that should roughly see the low around the time EUR/USD finds its low. That should, at least, see a deep pullback but that’s a story for another month – or more.

Having seen a triple three that finally stalled at the 86% retracement, USD/JPY should now begin to form the Wave i and Wave ii. That should take up much of today. This should provide a balance between EUR/USD and USD/JPY in EUR/JPY on the downside but it looks a rather ragged development. Most likely EUR/USD will see a stronger decline compared to USD/JPY.

I provided two options in USD/CHF – a shallow pullback and a deep Wave b/v or a pullback that should reach around 1.0135. It reached 1.0126. So now we have the pleasure of working through the 3-wave rally.

The Aussie is down a bit and we should see a pullback higher and then for some solid losses to compare with EUR/USD.

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