Do not anticipate and move without market confirmation - being a little late in your trade is your insurance that you are right or wrong.
USD
EUR/USD
The Shared currency slipped to $1.1580 after ECB's President Christine Lagarde stated at an International Monetary Fund event on Saturday that the European Central Bank will continue aiding the euro-area economy as the fallout from the pandemic lingers.
GBP/USD
The Cable firmed at $1.3729 on hawkish comments from the Bank of England Governor Andrew Bailey, that the central bank is ready to act if there is a significant rise in medium-term inflation.
USD/JPY
The Japanese yen extended its losing streak to 114.35 versus the U.S dollar as U.S September's Retail Sales and US T-bond yields rose unexpectedly on Friday.
AUD/USD
The Aussie dollar pressured down to $0.7404 on the back of weaker than expected Chinese macro releases earlier today.
USD/CAD
The Loonie trimmed some of its gains to 1.2398 against the U.S dollar after the Bank of Canada Governor Tim Macklem warned that the faster price increase might slow the pace of Canada's economic recovery and global supply-chain issues weighing on the domestic economy.
USD/ZAR
South Africa's rand edged up to 14.67 per U.S dollar boosted by market bets that the South African Reserve Bank will raise its primary lending rate at its following monetary policy in November.
USD/MUR
The dollar-rupee idled at 43.05(selling) this morning after Bank of Mauritius' intervention on the Forex market last Friday.
The dollar Index extends its intense rebound near the 94.00 threshold, clinching a new high for this year 2021 amid an earlier rate hike expectation and announcement of a nearing tapering asset purchase which clearly impacted the yield curves.
A tightening of monetary policy by the European Central Bank remains far in the future but ECB remains vigilant on its inflation figures yet to be released this Friday. This could give additional upward momentum on the USD in the near term and exerts additional selling pressure on the euro and the pound.
On the technical side, after a breach and close above the 100% retracement A-B-C (93.72 level) ,the greenback could easily approach the 113% level at 94.38 followed by 127% level – 94.98 level in the near term. Resistance at 96.47 (161.8%) remains key level to watch
1.3750 marked the completion of ‘wave e’ of the triangular retracement (wave B) of corrective move A-B-C for GBPUSD and abruptly, we saw fresh sellers entering the market below the 1.3600 levels yesterday.
As per Elliott wave principle, GBPUSD is battling around 1.3515 levels and higher inflation, Brexit and Petroleum concerns could exert further pressure on the pound towards 1.32 levels towards completion of wave C.
A breach and close above 1.3750 nullify this downward pattern.
