Euro and Pound Remain In Large Ranges

As long as the EURUSD and GBPUSD are above 1.3877 and 1.7445, there is potential for a dollar reversal (to the downside). Coming under the mentioned levels would eliminate the bullish counts.

EUR/USD

The lower the EURUSD goes, the more I am inclined to label the drop from 1.4871 wave X in a larger correction (or wave B of a flat or triangle). The drop counts better as a 7 wave drop than an impulse (7 waves is corrective... .a double zigzag). Also, the two zigzags are nearly equal at this point. Only a drop below 1.3877 eliminates bullish potential.

USD/JPY

The USDJPY is still in a range. I favor the downside as long as price is below the trendline from the 110.71 top. However, failure to continue lower through 103.50 does not instill confidence in the bearish bias.

GBP/USD

The GBPUSD drop from 1.8675 counts well as a double zigzag (similar to the EURUSD). The two zigzags would be equal near the 1.7443 low. A triangle and or flat counts is still very much valid from the 1.7443.

USD/CHF

Divergence with RSI on the hourly warns of a top. Additional risk to bulls is the possibility that a larger correction is underway from 1.1422 and that the advance from near 1.07 is an X wave.

USD/CAD

This is a possible count. Waves 4 and 5 are small relative to waves 1 through 3, but this is the best count I see right now. If the decline from 1.0827 is an impulse, then the USDCAD should roll over from near current price (61.8% to 78.6% Fibonacci levels).

AUD/USD

The decline from .8524 is either a B wave within a larger correction from .7799 or the beginning of the next bear leg in a long term downtrend. A break of .7799 would eliminate any bullish count.

NZD/USD

The advance from .6435 is in 3 waves so a the long term decline may be back underway. It is also possible that a larger correction is underway that will end closer to .72. Action over the next several days should help to clear things up.

DailyFX

Disclaimer

Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.