“There is a time to go long, a time to go short, and a time to go fishing.”
USD
EUR/USD
The Shared currency retraced back from $1.0250 to $1.0230 as downbeat retail sales and German Factory orders indicated a slowdown in Eurozone.
GBP/USD
The pound nosedived to $1.2141 after the Bank of England statements yesterday revealed the UK is projected to enter recession in Q4 2022, and the Gross domestic product could fall by 2.1%. On Thursday, the Bank of England matched market forecasts by announcing the biggest 50 bps rate hike to 1.75%.
USD/JPY
The Japanese yen gained to 133.00 on risk aversion as News that China's missiles landed on Japan's exclusive economic zones raised market fears.
AUD/USD
The Australian dollar slipped to $0.6968 as the Reserve Bank of Australia downgraded its economic growth forecasts and revised up inflation predictions in its Monetary policy statement.
USD/CAD
USD/ZAR
South Africa's rand remained sidelined at 16.63 ahead of US Non-farm payroll data due today.
USD/MUR
The dollar-rupee idled at 45.20 (selling).
16:30 - USD - Non Farm Payroll
16:30 - CAD -Unemployment Rate(Jul)
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!
