The Dollar did press lower against the Europeans and stalled just short of the lows seen last Thursday. However, the correction from there has been rather deep and this perhaps implies that the market is not yet willing to commit to a lower Dollar at this point. This also seems to be mirrored in USDJPY which recovered but failed to penetrate the 90.48-80 resistance.

The implication as far as I can see is for continued consolidation today but I don't think it will last beyond tomorrow. It of course raises the unwanted result that dual wave counts are therefore being generated which is quite normal at these stages and itself is a reflection of uncertainty by the market.

Thus today should be a day to play the ranges and be aware of where support & resistance should develop. If I look at the JPY crosses they do still seem to have a general bullish outlook for the day, although within the boundaries of a possible correction. This is a situation to watch carefully since if I have any real concerns it is about the Yen.

Failure to break above the 92.52 high keeps the swing highs declining so a drop below 88.00 is going to look pretty bearish and by this I mean 86.35 at least and I wouldn't then be surprised to see 84.39. I have always felt it was a little too early to break lower since we still have over 2 years of bearish monthly cycles. Therefore, this is still a tentative outlook but one to keep in the back of your mind.

So then we have to see how the Dollar manages against the Europeans too. Just to repeat, my preference is for one more decline but I wouldn't want to fight against a rally that pushes above 1.0312-58 USDCHF or below 1.4671-82 EURUSD… GBPUSD is also mapping out what appears to be a triangle and we have to see which way this breaks.

Thus, in summary for today, basically take profit when seen when within the consolidation range. Only look for a stronger move on the break of the extremes of the range.