“Do more of what works and less of what doesn’t.”
USD
EUR/USD
The Shared currency fell to $1.0989 after comments from Fed Chairman Jerome Powell that the Federal Reserve would take "necessary steps" to tame inflation towards a 2% level even if it needs to hike rate more than 25 basis points in the future meetings. Market Eyes for Christine Lagarde's speech later during the day.
GBP/USD
The Cable plummeted to $1.3134 on a strong dollar ahead of BOE's Cunliffe speech.
USD/JPY
The Japanese yen cascaded further above the psychological level of 120.00 against the greenback as US T-bond yields refreshed multi-day top on bullish Powell's statement.
AUD/USD
The Aussie dollar traded rangebound at $0.7386 amid comments from Central Bank Governor Philip Lowe said that RBA will not respond until there is evidence of pervasive price pressures.
USD/CAD
The Loonie continued to trade towards its highest level against the dollar at 1.2590 as WTI crude oil prices rose to a new high.
USD/ZAR
South African rand ticked lower to 14.99 versus the greenback after U.S. Federal Reserve Chair Jerome Powell signalled a willingness to raise the federal funds rate more aggressively to combat inflation.
USD/MUR
The dollar-rupee climbed to 44.20 (selling) on a stronger U.S. dollar.
17:15 - EUR - ECB's President Lagarde speech
19:15 - GBP - BoE's Cunliffe speech
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.
