Yen Continues Domination; Commodity Currencies Collapse

The USD is giving back gains to the Euro while the AUD and NZD have reached their bearish objectives. Additional EURUSD gains are expected.

EUR/USD

The decline from 1.4871 is an impulse (5 waves). Expectations were that the ensuing advance would prove corrective and it has. However, the advance is extremely shallow when compared with the preceding decline, having not even reached the 38.2% (which would be near 1.39). I expect additional gains as long as price is above 1.3543.

USD/JPY

The USDJPY broke below 100 as expected and bears are gunning for the March low at 95.71. A break of that level is eventually expected as well. Near term, price ideally remains below 103.30. Short term resistance is at 101.

GBP/USD

After a small bounce to 1.7662, Cable slid lower and pierced 1.73 today! A flat could be unfolding in which the B wave low is this dip below 1.73. The other possibility (shown on the chart) is that the GBPUSD is about to accelerate lower. Given the extent of the decline to this point, the former seems more likely.

USD/CHF

"The USDCHF exceeded 1.1422. The advance is in 5 waves (as is the EURUSD decline from 1.4871) so a 3 wave correction is expected. Initial support is at 1.1215." The USDCHF has corrected and potential support begins around 1.12.

USD/CAD

The advance from 1.03 is in 5 waves so we should see a corrective decline begin soon. If it does, then we'll look to identify a bottom. Support begins at 1.0830.

AUD/USD

The second AUDUSD target (.6467) was reached. This is the 100% extension of .9856-.7799/.8524. With the objective being met and with daily RSI deeply oversold and divergent with price, expect a pullback/consolidation.

NZD/USD

The minimum objective of below .5927 has been reached. The outlook is the same for the NZDUSD as for the AUDUSD; expect at least some consolidation, if not a longer standing low, to form soon.

DailyFX

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