Well, that was annoying… There I was, going through some analysis in the wee early hours of the morning and the market went bonkers. The reversal lower in the Dollar broke through the key barriers and I had to start over once again. The outcome appears defensive and corrective. The outcome implies that the 1.0569 low in EURUSD is now the Wave [i] – similarly with USDCHF as a high.
So the question is – how deep can the pullback penetrate?
Well, we appear to have completed a zigzag and half in EURUSD. Can we rely on a triple three? Given this is a correction we’re going to see some two-way development and will need to observe carefully. Hence the headline “Expecting Swings.” Given we’re moving into a long weekend in Europe it makes the swing process more likely.
The theme of “swings” may also generate complex corrections. So, it seems as if we’re going to see some volatility over the next 2-3 trading days without really seeing any excessive follow-through… Take care.