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USD
EUR/USD
The Shared currency edged higher to $1.0365 as Chancellor Olaf Scholz said that Germany will steer a way through the difficult energy crisis. German gas reserves to be fuller than last year by putting forward additional package.
GBP/USD
The pound extended its losses to $ 1.2180 as Brexit joined Bank of England’s gloomy outlook amid UK politics. Market eyes for UK GDP later today.
USD/JPY
The Japanese yen climbed to 131.80 against the greenback as US PPI dropped unexpectedly in July while Jobless claims hit monthly highs.
AUD/USD
The Australian dollar gained to $0.7121 as the central bank stated that the domestic economy has been resilient, forecasting unemployment rate to drop to 3.25% and maintain future rate hike of 50 bps at its next policy meeting
USD/CAD
The Canadian dollar remained on the backfoot around 1.2744 on lower expectation of further hike rate in the U.S amid weak U.S data.
USD/ZAR
South Africa's rand remained weak towards 16.30 as fears of recession grew despite several attempts to hike rate to combat high inflation.
USD/MUR
The dollar-rupee remained idle at 45.25 (selling).
13:00 - EUR - Industrial Production
16:30 - USD - Trade Balance
Past
EUR like a Deer in the headlights.
Euro has been trending lower over the last couple of months in the range of $1.06 and $1.0350. , unable to process and respond to the wicked combination of higher inflation and recession fears.
Current
Euro has pierced through key support yesterday and sank to $1.0234, its weakest since December 2002
Forecast
A dip to parity or below is in the cards.
1st target @ 0.9906 78.6% fibo retracement
2nd target @ 0.9127 88.6% Fibonacci retracement
Invalidation level @ 0.8221
Past
Double zig-zag upward correction W-X-Y
USD/MUR surged 24% from 37.05 of March 20 to 45.95 as of 6th July 22
Clear 5-wave structure since Feb 2018
Current
BOM shocking intervention higher at 45.30, a boon for U.S dollar against the rupee in the coming days.
Future
Anticipating Wave (v) of 5 of c of (Y) to end near 47.50, 161% Fibonacci projection
Invalidation Level @ 39.25
Past
After reaching a high of 51.05 (buying TT) in July 2021, the EUR/MUR failed to keep the bullish trend seen in 2020 and 2021 undermined by a falling EUR/USD since 2021.
The pair plummeted to a low of 44.61 on 13th of May 2021 before staging a recovery to 47.78 on 30th June 2022.
Future
However, the rebound on the EUR/MUR appeared short-lived as it turned south again this week
The pair could dive in the range of 43.50 and 44.50 in the coming weeks.
Invalidation level @51.05!
