Apart from Cable, the market was pretty limited. That’s a normal U.S. holiday. Of course, with the news of a “Brexit deal within our grasp” according to Theresa May, we had a minor whiplash but one that was limited to within a bearish outlook. I may be cynical but frankly, all parties in this process are politicians. That means … “me, me… I want power…” It ain’t gonna happen yet.
We now have the potential for two triangles. EUR/JPY has been developing through to the Wave ^c while GBP/USD has a strong chance of forming a triangle also – but a lesser version of EUR/JPY. This could provide the early stages – through Asia and Europe – before North America should push the dollar higher. Even USD/JPY appears to be eking out a long triangle also.
This leaves EUR/USD having the potential to form a triple three – or just losses while USD/CHF has room above and below the current sideways move. This is pretty much the same in AUD/USD that has formed a double zigzag so we’ll have to see whether it will just take out the bearish side or a triple three. I wouldn’t be surprised with the other pairs that we shall see a triple three. Once seen- then we can get back on the dollar bullish route.