It’s a bit of a broken record really. I can’t really repeat the outlook – but I have to. Basically, we have seen some fairly decent rallies in the dollar, mainly driven by EUR/USD and GBP/USD – but strange that the heated and bitchy unravelling of the porce proceedings are making the whole silly process even more ridiculous. But anyway… it helps the downside in these two pairs.
USD/JPY and USD/CHF having been making steady, but slow gains in the dollar. As a note, USD/JPY has formed two expanded flats over the past 2 days so they need to step up to the plate soon to trigger stronger gains.
The robust losses in EUR/USD and the reticence of USD/JPY to be more confident of the upside has allowed a bearish EUR/JPY. It is still needing losses but we should be heading into Wave (iii) and onwards so at some point we’re likely to see a pullback higher – and I guess that this will be when USD/JPY begins to be more confident.
The Aussie… well, it’s doing its own thing. All the other 5 pairs are in impulsive mode while the Aussie is in a corrective mode. That tends to suggest, a little while down the road, that we’ll see some deeper pullbacks and this will provide the opportunity to see a push higher – but it’s not quite there yet…