“Winners are willing to go longer, work harder, and give more than anyone else.”
USD
EUR/USD
The Shared currency consolidated in the range of $1.0220 from its previous high of $1.0250 as IFO German business sentiment came at its lowest in more than 2 years. Political instability in Italy also weighting on the pair as well as uncertainty over Europe energy security.
GBP/USD
The Cable grinded higher around $1.2100 despite UK political jitters as Friday's better than expected flash UK PMI reaffirmed market bets for a 50 bps rate hike from the BOE.
USD/JPY
The Japanese yen gained to 136.40 amid downbeat US treasury yields and mixed comments from Bank of Japan Monetary Policy meeting's Minutes who has agreed to maintain ultra low interest rate to support fragile economy.
USD/CAD
The Loonie has strengthened to 1.2828 against the greenback amid a hike in WTI oil prices and its worth noting that the 100bps rate hike of BOC is providing extra support to the CAD.
USD/ZAR
South African rand edged higher to 16.73 ahead of key interest rate decision from the FED. President Cyril Ramphosa is set to address the nation later in the evening on the government's plans to tackle the country's worst-ever power crisis.
USD/MUR
The dollar-rupee stayed put at 45.15 (selling).
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!
