You need to be nimble and flexible. Sometimes strict rules force people to do the wrong thing because they are just applying rules.
USD
EUR/USD
The single currency sparked to a high of $1.1330 on Friday before retreating to $1.1277 this morning. In an interview during the weekend, ECB President Lagarde said the Eurozone was better equipped to face the economic impact of a new wave of COVID-19 infections or the Omnicron variant.
GBP/USD
The cable perked up to $1.3333 despite Brexit conundrums lately where European Commission’s vice president Schinas on Saturday told Britain it has to sort out its migrant problems post-Brexit.
USD/JPY
The Japanese yen halted gains at 113.03 to 113.70 against the dollar as Japan’s Retail Trade eased to 0.9%, versus 1.1% market consensus and -0.5% prior, in September.
USD/CAD
The loonie ticked up from a two-month low at 1.28 to 1.2740 per dollar as the panic-induced discovery of the Omicron coronavirus variant ebbed away.
AUD/USD
The risk-sensitive Australian dollar seesawed around $0.7145, recovering after a 1% tumble on Friday that saw it dip to $0.71125 for the first time since Aug. 20 as key global economies registered Omicron cases.
USD/ZAR
South African rand rallied to 16.14 per dollar despite countries globally hastened to tighten border controls from South Africa and its neighbouring countries, with the newly found Omnicron.
USD/MUR
The dollar edged by 13 cents to 43.42(selling) following the Bank of Mauritius’ intervention on the FX market on Friday.
19:00 - USD - Fed Chair Powell Testifies
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.
