Well, the FX markets are slow at the moment, despite some strong sell-off in equities in the last 24-48 hours. It seems that FX traders are awaiting the FOMC meeting minutes and Draghi’s who will give a speech later today at 18:30GMT, just 30 minutes after the FOMC.
USD pairs will move, that’s for sure, now the question is in which direction?
Well, I am a trader and analyst with a technical approach so I rely on market swings. If we take a look on USD Index, we can see that the market recovered last week in an impulsive manner to 80.53, which means that the money is on the bullish side. In fact, a decline from that latest swing is much slower than the previous rise, and therefore it confirms the strong bullish momentum and decreasing bearish momentum. From an Elliott wave perspective we see a three wave set-back, called a zigzag that is already at its ideal Fibonacci levels, at 50-61.8% retracement. Generally speaking, we expect a bounce in price back above 80.53.
USD Index 1h Elliott Wave Analysis
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