The USD is showing some nice strong price action since yesterday against EUR, GBP, CHF and JPY, but not so much against commodity currencies which are still acting very strong despite lower gold and oil prices. Our special attention is still on EURUSD and USDJPY.
EURUSD turned nicely lower ideally already in a new bearish impulsive sell-off that will take us back to 1.1000 soon and much lower based on higher degree wave counts. 1.1130 can be out today if we consider that current minor bounce can be sub-wave 2.
EURUSD Hourly Chart
On USDJPY we are observing a slightly different scenario as we are looking for some of the wave counts that may cause a new pullback before market may extend higher. This view is especially important from a trading perspective as it may offer much better risk-reward set-ups if we get a dip down into wave two as shown on hourly chart of USDJPY.
USDJPY Hourly Chart