When you align what makes you happy with what helps the world around you, you can live an exuberant life.
The single currency crunched from $1.1780 to $1.1733, as speculation mounted about a possible shift in policy ahead of the two-day Federal Reserve meeting ending on Wednesday.
The cable pierced to $1.2907 yesterday before retreating to $1.2855 this morning, on reports that the European Union's Brexit negotiator Michel Barnier expressed confidence that a new deal with Britain was possible.
The anti-risk yen trimmed gains to 105.54 against the dollar as the U.S. dollar witnessed an oversold bounce across the globe.
The Aussie receded from $0.7176 to $0.7130, perturbed by the downbeat Australian jobs data as total payrolls fell 1.1% between mid-June and mid-July.
The rand edged higher to 16.43 against the greenback spurred by a sliding dollar, as increasing U.S. coronavirus infections stalled demand for the reserve currency.
The Mauritian rupee surged by 40 cents to 40.15(selling) against the dollar buoyed by the intervention of Bank of Mauritius on the domestic market.
18:00 - USD - CB Consumer Confidence (Jul)
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)).
- Post-triangle thrust measurement of wave B of (Y) leads exactly to 105.20.
- 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.
On the hourly Chart, The USD/CAD has found strong support again near $1.3350 region yesterday. The pair fell to as low as $1.3345 before bouncing off relentlessly to as high as $1.3444 this morning.
We feel that the USD/CAD could be in an early stage of a bullish run towards $1.4017 in the coming months.
On the downside, $1.3315 remains a strong baseline , while a break below that level would open the door for further weakness on the USD/CAD near $1.3200.