“That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’”
USD
EUR/USD
The Shared currency renewed intraday low at $1.0980 as investors are waiting for the European Union (EU) leaders summit, which will also be joined by US President Joe Biden on Thursday to discuss an embargo on Russian oil. PMI data later to be released during the day.
GBP/USD
The cable witnessed a steep fall on Wednesday to trade around $1.3190 as higher UK inflation numbers soured the mood of investors. Market eyes for UK PMI today.
USD/JPY
The Japanese yen lost ground this morning to 121.25 after the Bank of Japan (BOJ) policymakers flagged concerns over inflation but showed readiness to extend an easy-money policy if needed, per the Minutes of the latest BOJ meeting.
AUD/USD
The Aussie dollar regained traction to trade near its day high of $0.7483 amid rising prices of metals which are bringing more flows to the Australian currency.
USD/CAD
The Loonie faded slightly this morning to 1.2575 after hitting a low of 1.2540 yesterday as WTI oil prices eases from two week's top as sour sentiment underpins USD strength.
USD/ZAR
The South African rand gained further on expectations of 25bp rate hike later today and was also supported by higher prices of gold, of which South Africa is a major exporter.
USD/MUR
The dollar-rupee climbed by 10 cents to 44.30 (selling) on stronger USD
13:00 - EUR - Market PMI
13:30 - GBP -Market PMI
16:30 - USD - Jobless Claims
17:45 - USD - Market PMI
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.
