“Don’t blindly follow someone, follow [the] market and try to hear what it is telling you.”
USD
EUR/USD
The Shared currency rebounded to $1.00 on hopes of a more dovish central bankers' speeches during the all important Jackson Hole symposium later today. Market eyes also for key IFO sentiment and Gross domestic product (GDP) data from Germany.
GBP/USD
The Cable climbed to $1.1841 as the odds favoring ex-Chancellor Rishi Sunak to become the Prime Minster keep the pair buyers hopeful as he braced for less spending and would reduce power tariffs and put in place a "solidarity" tax hike to cushion energy price shock for households.
USD/JPY
The Japanese yen soared to 136.50 against the greenback as Bank of Japan (BOJ) Governor Haruhiko Kuroda stated that the Japan's economy is picking up and consumer inflation is likely to accelerate on boost from energy.
AUD/USD
The Aussie dollar renewed daily high of $0.6957 as China’s Cabinet, State Council, outlined a 19-point policy package while announcing economic stimulus measures worth CNY1 trillion ($146 billion) to stimulate growth affected by covid lockdowns and property market crisis.
USD/CAD
The Loonie scrambled to 1.2940 as oil prices advanced firmly after oil cartel announced production cuts.
USD/ZAR
The South African rand clambered to 16.87 after data showed consumer inflation accelerated in July, signalling the likelihood of domestic interest rates hikes.
USD/MUR
The dollar-rupee stayed put at 44.60 (selling).
10:00 -EUR - GDP - Germany
12:00 - EUR - IFO sentiment - Germany
13:00 - EUR - ECB policy meetings account
16:30 - USD - Jobless Claims/ GDP
18:00 - USD - Jackson Hole Symposium
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!
