Dollar gains to be seen
|What a slow day. Have we seen the high in GBPUSD? The rally was a tough development so I have some doubts. However, we have either seen the high – or we’ll see a minor new high before losses resume. That should see the Majors – except USDCHF – in a Dollar bullish quorum. It seems that USDCHF (the renegade) needs another 5-wave decline to complete a triple three and I have to say that this pair is a glorious pain in the backside…
So… over the day we should now begin to make Dollar upside progress – and overall we are now at the beginning a stronger daily development.
Having said that, we shall need to first develop the foundation waves - how deep the follow-through will be and then the pullback, So we’re not likely to see any particularly strong moves today. In EURUSD we saw the pullback in the Wave (b) and now we should look for the Wave (c)/(i). At this early stage, without any clear development, it’s rather difficult to judge how strong this next leg lower will develop. Therefore, we shall need to follow the decline and watch for bullish divergences to provide the low.
USDJPY should see gains today. GBPUSD should end the day lower. The Aussie has already seen some decent losses and we should see follow-through. With EURUSD topped out but a firmer USDJPY we could see some consolidations at times but overall I suspect EURUSD will be stronger than USDJPY.
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