From the end of January, we’ve been looking towards the dollar upside for quite some time. I suspect this will see the low today. This will need a follow-through – not excessive but enough to form, for most of the pairs, to complete a Wave [a]. We may need a little more time for GBP/USD. That covers EUR/USD, USD/CHF and GBP/USD. The final of the 4-majors is USD/JPY. However, we have a different structure here but this may help us to work out how deep the corrections will be in the other three pairs.
So, once the 3-majors find their dollar highs we shall expect dollar losses – and probably USD/JPY as mentioned above with its alternative structure. How deep? Well, at this point it’s almost tossing a coin – but not quite. If I now bring in the Aussie, it really hasn’t made very much impact on the dollar upside. This could then see a final zigzag higher – so be aware.
With EUR/JPY having reached the final (blue) Wave a in a triple three, we should see limited losses and then for a final 5-wave rally to complete that triple three. This tends to suggest a stronger reversal throughout the majors. It won’t happen today but more likely next week…