“There is a huge difference between a good trade and good trading.”
USD
EUR/USD
The Shared currency pierced the parity level to trade at $0.9920 as risk aversion persists amid recession fears hitting the eurozone with soaring gas prices. Market eyes for German PMI later during the day.
GBP/USD
The Cable edged lower to $1.1755 as business leaders have warned that the UK government's plan to tear up part of its Brexit deal with the EU and replace the Northern Ireland Protocol will create new problems. Market awaits PMI data during the day.
USD/JPY
The Japanese yen printed more losses to 137.40 as preliminary readings of Japan's Jibun Bank Manufacturing PMI for August dropped to 51.0 versus 51.8 expected.
AUD/USD
The Aussie dollar fell sharply to $0.6858 as growth prospects for China and the global economy deteriorated, coupled with a slower rate hike expectation in Australia.
USD/CAD
The Loonie remained on the backfoot at 1.3060 against the greenback as the expectation of a further rate hike in the US is expected from Federal Reserve Chair Jerome Powell during his speech at the Jackson Hole symposium in Wyoming on Friday.
USD/ZAR
The South African traded sideways around 17.05 ahead of unemployment data later during the day.
USD/MUR
The dollar-rupee nosedived to 44.60 (selling) on Central Bank Intervention.
11:30 - EUR - German PMI
12:00- EUR - PMI
12:30 - GBP - PMI
17:45 - USD - PMI
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!
