I was a little shocked with the deeper pullback in EUR/USD that implied that we had formed a Wave I and Wave ii. More than that, I was even more shocked in AUD/USD that brought us higher to the (purple) Wave -b-.
However, this should now see a move back to the Dollar upside. EUR/USD managed to form a Wave a and maybe Wave b, so we should be heading lower here. GBP/USD also managed a deep Wave ii and therefore we should be reversing that rally to see losses back below the (cyan) Wave i. Both USD/JPY and USD/CHF suffered further Dollar losses yesterday but both now have bullish divergences and that will provide the impetus to push back higher.
The only thing is, how quickly can they move back to the current Dollar highs. It’s a Friday, so I suspect we shall see gains, but I doubt we’ll reach the current highs.
The Aussie… surprised with the rally but we should now see losses.
In the cross, we have a bearish EUR/USD and bullish USD/JPY. It doesn’t make for a strong range and the balance between the pairs could see some ups and downs without a particularly strong range.
Have a great weekend
Back To The Dollar Upside
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