Close to a reversal
|Ouch… The correction I expected was nothing like the pullback I had envisaged… Instead, in EURUSD and GBPUSD the Dollar ploughed higher and basically almost completed the entire move rally. This tends to suggest limited gains from here on. Most likely we should see a pullback lower in the Dollar and later new high over – maybe today - or into tomorrow depending on how the market decides to react.
While all the rush and fever in EURUSD and GBPUSD, the other two majors quietly looked upon their brethren and forgot to react. USDJPY should see a minor follow-through and later a recovery. Equally, USDCHF should rather remain in a sideways move. The reasoning comes from the fact that EURUSD and GBPUSD appears to have limited Dollar upside and over the week a firmer correction. GBPUSD may well have completed its decline.
We may have seen the Aussie complete its Wave v but take care. Either we’ve seen the low – or will see limited follow through before the reversal higher. I also suspect that EURJPY has found a low for now and may well begin to see a ragged pullback higher…
Take care over these limited Dollar gains.
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.