There is a huge difference between a good trade and good trading.
USD
EUR/USD
The Shared currency erased most of the last week's gains to $1.0901 amid growing stagflation worries in Europe arising from the Ukraine war. Moreover, the euro was also undermined by expectations the Federal Reserve would start raising interest rates at the end of its March 15-16 policy meeting, with U.S inflation running hot.
GBP/USD
The Cable extended losses to $1.3018 ahead of BoE's interest rate decision this Thursday despite bets firmly on a further 25-basis-point rate hike.
USD/JPY
The Japanese yen printed a six-day losing streak to refresh the lowest level since January 2017, near 117.75, versus the greenback as U.S. five-year Treasury bond yields renewed an all-time high above 2.0% amid record U.S inflation last week underpinned the USD.
AUD/USD
The Aussie dollar weighed down to $0.7253 after China reported the highest daily covid infections since May 2020 and announced harsh lockdowns in two states. RBA minutes eyed for tomorrow.
USD/CAD
The Loonie faded to 1.2776 against the greenback despite Canadian employment numbers surpassing expectations on Friday.
USD/ZAR
South African rand held ground at 15.06 per U.S dollar on the back of stronger commodity prices and steady positive foreign fund inflows into the debt and equity market.
USD/MUR
The dollar-rupee blasted by 15 cents to 43.85 (Selling) on the local market.
11:00 - EUR - German WPI (YoY)(Feb)
After bouncing back from key resistance level 0.6262 from the upside as per our last forecast (see below) , NZDCHF sworn down to 0.6144 but lacked sufficient selling pressure to continue its downtrend.
It appears that final wave Y of W-X-Y correction is quite complex and there might be 2 scenarios popping up in the near term.
Scenario 1 : we could have reached final wave ‘e’ before downtrend resumes. (As per Elliott wave principle a triangle can be formed as final wave C of wave Y of W-X-Y correction)
Key resistance level is wave ‘e’ of barrier triangle of wave C – 0.6259.
