By failing to prepare, you are preparing to fail.
The Euro hovered near four-month highs at $1.1456, with investors holding out hope that European leaders will break a deadlock and hammer out an economic rescue deal in their marathon summit talks.
The Cable lost ground to $1.2540 on pessimism surrounding Brexit and tussle with China, not to forget increasing odds of the Bank Of England’s negative rates.
The Japanese yen dropped to 107.27 versus the U.S dollar after Trade Balance Total recovered from ¥-833.4 Bn to ¥-268.8 Bn.
The Aussie dollar unbothered at $0.6990 after the People’s Bank of China announced no change to its prime lending rates.
South Africa's rand firmed on Friday at 16.70/dlr, as demand for riskier assets was given a boost, on hopes a European Union summit will make progress on a recovery fund that could help lift global growth.
The dollar-rupee surged by 20 cents to 40.35(selling) on the local market.
19:10 - GBP - BoE MPC Member Haldane Speaks
Double three combination- (W)-(X)-(Y)- targets to $1.2169 and $1.2115
From Mid-April 2020, the Pound appeared to be caught into a continuous range bound price movement of $1.2078 and $1.2815. Elliott called this type of extended sideways base pattern a double three combination of two corrective patterns. A combination is composed of simpler types of corrections pattern, including zig-zags, flats and triangles. The simple corrective pattern components are labeled W, Y and Z.
An inspection of the double three combination on the hourly chart suggests the following: Wave (w) from April 15th to May 15th form a flat correction, while the rise from $1.2078 to $1.2815 was wave (x).Wave (y) is still unfolding into a possible Zig-Zag correction. It is likely that two corrective waves( a and b) of the Zig-Zag may have been completed at this juncture and that the market is in the process of tracing out Wave c of wave(y).
In the short term, Wave c of wave (y) could bottom at $1.2169 (within the area of the fourth wave of a lesser degree). While $1.2115 could prove as good alternative support based on typical ratio analysis guideline( Wave c=a, Wave (y)=(w)).
On the other hand ,any upside reversal would depend upon a break of $1.2665/70 area comprising highs market on last Thursday and on Monday. A successful break at $1.2670 would open the door for June month top near $1.2815.
After rallying from bottoming all time low at 101.20 to 111.71 in covid-fueled March period, dwarfing an expanding leading diagonal ((1)) in 5 waves, USD/JPY has ever since unfolded in a corrective double three combination pattern (W)-(X)-(Y) of wave ((2)).
From an Elliott Wave trading standpoint, the pair may experience further decline to the choppy downside to complete countertrend wave (Y) because
- An impulse usually retraces to at least wave (4) of previous smaller trend, that is 105.19.
- Wave (4) of wave ((1)) coincides with 61.8% Fibonnacii retracement of wave ((1)), i.e 105.19.
- 78.6% projection wave (W) through (X) targets level 105.30.
- In EW lexicon, a pullback to the previous wave (2) usually happen to a leading diagonal ((1)).
- USD/JPY is still trading within the bearish parellel trendlines.
Thus, hibernation of price action could be seen in the locality of 105.30/19.
On the flipside, a violent recoil to revive bullish momentum at 109.84 of June 4th would nullify this set-up, warning that the potency of positioning-derived bearish signal may be ebbing.