A slow start - later dollar gains
|It was hardly surprising that the market went on strike. It always does on U.S. holidays. However, the general expectation I had was for pullback lower in the Dollar. Having seen EURUSD make a new low the high risk will be for an expanded flat – and this hasn’t yet completed. This should see the other USDJPY and USDCHF completing a 5-wave decline that should last into the European session at the very least and more likely into the U.S. market.
I’m slightly concerned about GBPUSD. The balance of the structure suggests a limited upside and later further losses - but there’s a wider range to be seen in the other 3 Majors. This will need some care but at the end of the day, we should be looking more towards the Dollar upside.
The Aussie has completed a zigzag higher. Can it form a double zigzag or just a direct decline? It has been a slow-moving development but just take care.
As for EURJPY, we have seen a double zigzag higher – Note the Wave x that will send price lower – or a final zigzag to form a triple three.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.