The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless.
The single currency traded flat at $1.1780, showing little reaction to the purchasing manager surveys of France, Germany and the eurozone. Market waiting for the German Business Climate data and US New Home Sales for June to take fresh trading impetus.
The cable seesawed around $1.3755 although the headline UK Retail Sales on Friday recorded a growth of 0.5% in June compared to 0.4% expected.
The yen soared to 110.27 per dollar, shrugging off downbeat Japanese Services PMI this morning.
Loonie was sidelined at 1.2582 per greenback, even after a better-than-expected Canadian retail sales report.
Aussie tumbled to $0.7350 as the risk-off mood intensifies amid tensions surrounding the US-China talks and looming Covid worries in Australia.
The South African rand extended a recent slide to 14.85 per dollar as the arson and looting could have a lasting economic impact on the country.
The dollar rupee unchanged at 42.95(selling) on the local market.
12:00 - EUR - German Ifo Business Climate Index (Jul)
18:00 - USD - New Home Sales (Jun)
EURGBP appears to be riding into a corrective wave A-B-C after completing 5 waves to the downside. Yesterday, we observed an impulsive break out of wave B channel which could lead EURGBP towards final wave C as per Elliott wave analysis. we remain bullish on EURGBP with stop loss below 0.8500 targeting 0.8757 , 0.8826 and ultimately 0.8915.
After rallying towards a high of 156.07 end of May 2021, we saw a three wave corrective move to the downside in GBPJPY which possibly could be the end of a corrective wave A-B-C before a new high is formed or possibly part of a larger corrective combination wave W-X-Y as per Elliott wave perspective.
127% appears to be good level for short term rebound to the upside.
Approaching 149.00/149.10 could be an opportunity to long the market with stop below 148.30 with targets levels 150 , 150.71 and 151.70.