Back To… More Of The Same For FX Pairs

Ohhh… I didn’t like yesterday. It all started with a whip lower in the dollar and a sharp rally. At that level in the 5-minute area, the structure was scant and I basically looked at this as a probably Wave i and Wave ii and followed by a Wave a/iii. Well, towards the end of the day we had a deep pullback. This shocked because we have seen a modest Wave -i- and Wave -ii- and followed by a second Wave i and deep Wave ii. It’s not something you’d think of because it implies a firm 5-wave move to form a Wave a- and thus a modestly deep Wave -b-/-iii-… This has been seen in both EUR/USD and GBP/USD…

The Aussie also formed a deep Wave ii but hadn’t an earlier deep Wave -i- and Wave -ii-. This provides a convincing argument for these three pairs. USD/CHF merely made a stronger rally than I had suspected but then a pullback while USD/JPY also saw an approach to a key break level but hasn’t broken. Watch for the levels and the alternatives in the report.

Finally, in EUR/JPY, while there is room for a pullback higher, frankly, the next target is quite some way away…

This could be a firm day…

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