All you need is one pattern to make a living.
USD
EUR/USD
The Shared currency recovered from a low of $1.1226 to $1.1290 after the German and Eurozone ZEW Economic Sentiment Index surpassed market expectations.
GBP/USD
The Cable dropped to $1.3255 and failed to derive much support from decreased Omicron worries, with BoE rate-hike expectations shifting to early 2022.
USD/JPY
The Japanese yen modestly gained to 113.50 against the U.S dollar following U.S. trade deficit data narrowed sharply in October.
AUD/USD
The Aussie dollar pierced to $0.7130 amid a pick-up in risk appetite on signs Omicron may be less severe than other COVID-19 variants but still vulnerable to existing vaccines.
USD/CAD
The Loonie extended gains to 1.2644 against the greenback after positive Canadian Ivey Purchasing Managers Index data for November added to the Canadian dollar's strength, BoC interest rate decision eyed.
USD/ZAR
South African rand sailed higher to 15.83 per U.S dollar despite S.A's GDP contracted for the first time in 2021 after four successive quarters of positive growth.
USD/MUR
The dollar-rupee stayed put at 43.42(selling).
19:00 - CAD - BoC Press conference
19:30 - USD - Crude Oil Inventories
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.
