“The fundamental law of investing is the uncertainty of the future.”
USD
EUR/USD
The Shared currency refreshed intraday high around $1.1035 as buyers cheered USD weakness to print the biggest daily gains in a week. European leaders will have another day jostling over the Russia-Ukraine crisis while awaiting for the German IFO sentiment data for March.
GBP/USD
The Cable regained momentum towards $1.3215 on recently mixed UK data ahead of retail sales data later today.
USD/JPY
The Japanese yen gained this morning to 121.70 as Japanese Finance Minister Shunichi Suzuki has announced that the administration will consider steps to cope with price hikes as its local currency has been hit due to constant rising prices of metals.
AUD/USD
The Aussie dollar set for weekly gains on Friday at $0.7525, boosted by expectations of higher interest rates and booming commodity prices.
USD/CAD
The Loonie benefited to $1.2527 due to US dollar weakness despite oil price recovery.
USD/ZAR
The South African rand rallied to 14.51 as the Reserve bank of South Africa raised its interest rate by 25bp and revised its GBP upwards to 2% from 1.7%.
USD/MUR
The dollar-rupee jumped to 44.35 (selling)
11:00 - GBP - Retail sales
13:00 - EUR - Germain IFO
18:00 - USD - FED William 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.
