Stocks came down and USD found some support in the last few sessions as traders can be preparing on a next FOMC hike, which is s set to hike rates by 75 bps on Wednesday. However, there may not be that hawkish outlook, especially after Janet Yellen warned of a slowdown in the US economy with her latest remarks.
Technically, we see USD still in a downtrend when looking at DXY. We see nice first impulse from the highs, so more weakness will be expected after the current consolidation phase. As such, be aware of more gains on other currencies, such as EUR, AUD, CAD and even JPY. In my focus however, will be Aussie this week, and AUD CPI data in particular after RBA noted that they will track this data closely for further decision regarding rates.
In our latest video, published below, I covered Aussie which I think it has a lot room to recover as pair breaks out of a wedge, also called an Elliott wave ending diagonal. In the video I also looked at some other interesting pattern, across different markets.
All the best!
Gregor and Team…
If you like what you see here, and would like our Macro Views sent directly to your mailbox, free, just click on link below and register.
The Trader Funding Program. Trade and receive 75% profits. LEARN HOW
Love what we do? Please follow us twitter. https://twitter.com/GregaHorvatFX