Markets still did not go far this week despite some EUR weakness yesterday but this was reversed in the last few sessions. We still see FX in small corrections that will send the USD even higher, while stocks are also turning up, and commodities are falling.
EURUSD is trading slightly up from the recent low but we see this is nothing else than just another correction. It’s probably wave 4 that can look for Resistance around 1.0790 or 1.0820 later today.
EURUSD, 1H
USDJPY moved down to the 122.70-123.00 area as expected from where the price turned up for nearly 50 pips in the last few hours, so a corrective decline can be completed. We think that this was wave four and that prices will continue back to the highs soon.
USDCAD also shows a corrective structure from the highs; a slow and overlapping price action within a downtrend channel. It looks like a pause within an ongoing uptrend that started on Nov 3rd. Based on the latest substructure, traders should be aware of a push above 1.3296 that will make room for new highs.
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