“Letting losses run is the most serious mistake made by most investors.”
USD
EUR/USD
The Shared currency traded in a range of $1.0800 to $1.0930 yesterday as investors booked some profits ahead of Euro GDP numbers later today. EURO remained vulnerable to the downside as slower economic growth forecast prevails and is currently trading at $1.0860.
GBP/USD
The Cable remained on the back foot around a multi-day low of $1.3113 as the UK resisted backing the US over Russia oil import ban, and recent conflicts have reduced the likelihood of more rate hikes by the Bank of England.
USD/JPY
The Japanese yen slid further to 115.47 against the greenback amid firmer US treasury yields and January's latest downbeat trade balance and current account data.
AUD/USD
The Aussie dollar pulled back from its high to trade at $0.7285 as commodity prices paused for a breath from their highs.
USD/CAD
The Loonie fell sharply against the greenback to 1.2820 as Germany rejected a plan to ban import oil from Russia overnight, thus barricading the rally in oil prices.
USD/ZAR
South African rand extended its losses amid a stronger U.S. dollar. This week's focus will be on gross domestic product data for the fourth quarter of 2021 due on Tuesday and January mining and manufacturing numbers on Thursday.
USD/MUR
The dollar-rupee nosedived to 43.70 (Selling) on Central Bank Intervention.
14:00 - EUR - Unemployment change and GDP
17:30 - EUR - USD Goods trade balance
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.
