Last week was a rather strange one. We saw USD/CHF make a new high by 0.00002, perhaps just because it wanted to see the sky and then spent two days moving back lower. USD/JPY spent a sleepy week where it couldn’t make up its mind on which way to go. It still has some question marks as to the next move – it has several options. EUR/USD didn’t seem to want to move lower on Friday with the additional move higher just because it wanted to. However, it MUST make the outcome I mentioned on Thursday.
However, already, GBP/USD has taken a drastic step to form a Wave (ii) of just 14.9%… Will it make a stronger decline? At this point, with the other pairs flapping around like wet kippers, I suspect a rather limited range for the moment to give time to the other pairs to follow suit.
The Aussie – ah, I made a slight error but one that isn’t too extreme. Most likely it’ll take the same path as EUR/USD except they have different structures.
With USD/JPY appearing to have imbibed a rather alcoholic substance, it will likely be a sideways t lower day while EUR/USD moving lower the outcome in EUR/JPY appears to be bearish…