Forex Charts
FX Daily
The ECB meeting will be the main event today and we expect the ECB to ease policy. On Monday, ECB president Mario Draghi told the European parliament that thecurrent rate of
USDCAD – focus is still on a wave-(d) decline to 1.10 (part of triangle)
Our call has been for a choppy wave-(d) decline towards 1.10 where multiple targets align. The 1.10 level is where wave-(d) would equal wave-(b) x .618 which is common in coiling corrections.
USDJPY – impulsive wave-c rally underway to 103.15/65; 102.86 is key
The rally through 101.39/67 pivots that we posited has confirmed a wave-b low and now prices are rallying towards a target zone between 103.15 & 103.65.
EURUSD – approaching channel support s at 1.3689/75; part of wave-(e)
The Euro is limping lower as expected in what could mark wave-e (wave-3) in a decline from key resistance near 1.38. The 1.38 level has marked highs throughout Oct, Dec and Feb.
FX Daily
As tensions in the Russia/Ukraine conflict are easing, economic data will likelyget some more attention again. Service PMIs will be released in most countriestoday.
FX Daily
A quiet day in an otherwise busy week. There are no important data on the globalscene. However, developments in Russia/Ukraine will continue to attract attention.
USDJPY – 101.39/67 key to reversing near-term downtrend
The bullish triangle has been negated overnight with the break of 101.39 support. Still, above 100.77 we favor a bullish Elliott count that has prices completing wave-(b) of an (a)-(b)-(c) rally with expectations for a move to 103.75.
EURUSD – from below 1.3846 we expect a resolution towards ~1.36
The Euro is very near the triangle target and 2008 downtrend resistance at 1.3846 and this also aligns with minor channel resistance from February.
FX Daily
The main release today will be the US ISM manufacturing index for February, wherewe look for a slight rebound to 52.3 following the sharp drop in January to 51.3.
USDJPY – ideal target for wave-d (within triangle) is 102.45
The key to our near-term bullish outlook is prices holding above the wave-a low at 101.39; this keeps the triangle intact. Momentum is still locked in a tight range and
EURUSD – key range today is 1.3773 to 1.3833; 2008 downtrend surfaces
The lack of a sustained downtrend from December’s reversal shifted our outlook and the idea that another test (or marginal breakout) of 1.39 was likely.
FX Daily
Euro inflation will likely drop to a new cycle low of 0.6% in February, whichadds pressure on the ECB ahead of the meeting next week.