At last, the pullback
|Goodness gracious… The Dollar gains were pretty persistent. USDJPY saw a Wave v at the 76.4% projection while EURUSD only managed a 50% projection in the Wave v. That took USDCHF higher to almost reach the high – but just 7 points below. As for the final Major, GBPUSD saw a 14.6% expansion at the low and therefore we should be heading lower in the Dollar now.
So, the basic outlook is Dollar bearish but I feel this will be a relatively limited correction due to GBPUSD. The only possible problem is that sometimes the follow-through is slightly stronger. What we shall need to look for is the Wave iii and where it falls. We also have a 30% Wave ii and that tends to suggest a Wave iv of over 50% - but perhaps it can see a 76.4% projection in Wave v. So, keep track of this pair because it should provide us with a reversal.
Most likely we’ll see EURJPY extending gains – but now with the balance between a bearish USDJPY and bullish EURUSD, it may provide a consolidation for a while.
The Aussie should see further gains but difficult to judge how high the Wave -b- will be. It also has its own way of doing things so we have to take care. However, we should see gains today.
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