We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful
USD
EUR/USD
The Shared currency struggled at $1.1026 this morning ahead of the European Union (E.U.) leader’s summit on Thursday, which will debate a boycott of Russian oil. In addition, rising Covid Variant numbers in Europe and a new lockdown in China weighed on the pair.
GBP/USD
The Cable consolidated its previous rebound to $1.3278 as market sentiment improved on news that America has struck a deal with the U.K. to end British steel and aluminium tariffs. Focus turns to U.K. inflation data and British finance minister Sunak’s fiscal statement due today.
USD/JPY
The Japanese yen tumbled to 121.08 against the greenback as leaping U.S. yields and a deteriorating trade balance suck cash from the world’s third-biggest economy.
AUD/USD
The Aussie dollar soared to $0.7457 as surging bond yields, and expectations for a protracted boom in commodity prices lifted the Australian dollar.
USD/CAD
The Loonie firmed at 1.2575 against its U.S. counterpart amid WTI oil prices retraced back from their peak after hitting a high yesterday on possible talk of a European ban on Russian oil imports.
USD/ZAR
The South African rand strengthened to a five-month high near 14.80 versus the greenback, on expectation the Reserve Bank of South Africa will raise interest rates this Thursday to tackle inflation. South Africa will publish February consumer price inflation numbers later during the day.
USD/MUR
The dollar-rupee remained unchanged at 44.20 (selling)
11:00 - GBP - CPI
12:00 - EUR - Non Monetary Policy meeting
16:00 - USD - Fed Chairman Powell 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.
