A slow start - but later looking to the dollar upside
|I spent some time over the weekend to clarify a few of the pairs. The very clear problem I have had is in GBPUSD. The structure I had been using had a Wave -iii- was out of range. I’m still somewhat unsure, but I feel the only outcome was a triangle but the first 3-wave rally is rather difficult. Having said that, it tends to fall into balance with the other pairs. I was expecting a pullback lower in the Dollar – and that has been seen. Ideally, the 1.3133 high should not break but there is a risk of an overlapping rally. Once that is seen, then this will tend to blend into the (most likely) 3-wave rally to complete a triple three.
Equally, USDJPY has seen a Wave -a-/-iii- so we should see losses while USDCHF has the potential for a new (probably) minor break below 0.9998. So overall, the start of the day looks like a corrective development.
The Aussie saw a new high. There’s even a risk of a higher high but not above the (brown) Wave -ii- so overall, later in the day, we should be heading lower again.
Finally, in EURJPY, it seems that we are seeing the final legs of an expanded flat.
Hopefully, by the end of the day, we should be heading back higher in the Dollar.
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