After yesterday's deep pullback – we should see a stronger Dollar
|The depth of the pullback in 3 of the 4 majors (GBPUSD was pretty limited) was not on my expectation list. Part of the issue was that it must have been a 5-wave decline and a deep pullback in the Wave b/iii. That allowed USDJPY and USDCHF to drop like a stone. We should have seen the lows – perhaps a mild dip perhaps – but overall there’s very limited room – particularly in EURUSD that approached the limit by just 6 points. So guess what… We should see the Dollar reverse back to the upside.
In GBPUSD, I was looking for deeper losses – but that didn’t happen. However, adjusting the initial decline it did form a 5-wave move – so we’ve seen the Wave [a]/[v] and most likely the Wave [b]/[v] also. Therefore, we should be heading down to below 1.2477 to a minimum of 1.2459 thru to 1.2382.
The forecast for the Wave [c]/[iii] in EURJPY remains valid. We just have to see a stronger reversal lower in EURUSD.
As for the Aussie… was there a bank holiday down under? The range was just 20 points over the past two days. Nope, I just checked. No holiday. Perhaps they are watching the cricket. It’s about time it broke lower…
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.