A wise person should have money in their head, but not in their heart
USD
EURUSD
The shared currency extended its rally to $1.0084 on expectations of more sharp interest rate hikes by the European Central Bank despite the current energy crisis.
GBPUSD
The Cable capped below 1.1650 as BOE delayed monetary policy meeting by a week on Queen’s death.
USDJPY
The Japanese Yen ran out of steam to 143.12 against the U.S dollar as the BoJ is on track to end its COVID-19-relief funding scheme but is likely to maintain ultra-low rates at the September 21-22 policy meeting.
AUDUSD
The AUD struggled at $0.6840 as the market mood turned sour amid Beijing's fresh covid outbreak, US-China tensions, and global recession fears.
USDCAD
The loonie extended its gains to 1.3027 per U.S dollar, mostly favored by a stronger price of WTI and feebleness of the greenback ahead of US CPI.
USDZAR
South African Rand gained traction against the greenback to 17.27 as the market digested the US inflation report to estimate future Fed rate hikes.
USDMUR
The dollar-rupee unbothered at 44.90(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!
