• Euro Responds to Greek Accord with Steep Rally yet Fundamentals Still Concerning
• British Pound’s Temporary Stability at Risk from Event Risk, Approaching Election
• Japanese Yen Could Move on Growth, Financial Progress in the Absence of Clear Risk Aversion
• Commodity Bloc Currencies Diverge from US Dollar, Risk Trends
Recent price action for the EUR/USD makes it a scalping target in its own right and the upcoming ECB decision will only add to its attractiveness. The looming event risk typically leads to a period of consolidation as traders error to the side of caution as the policy meeting has the potential to initiate a new trend. Solid technical support and the current range has the pair offering profit potential in its current environment for those with a bit more risk tolerance, as we have seen sharp intra-day moves.
A wave of risk aversion washed over the capital markets Wednesday and crude would escape the current. The commodity tumbled for the sixth time in the past seven days, offsetting the effort bulls made yesterday to foster a reversal. However, a new trend is not yet underway as the daily range on the active futures contract fit nicely within the previous session’s breadth. Considering how active both the news wires and trading ticker was for the day, there were plenty of potential drivers for the commodity; but sentiment clearly took responsibility for price action.
The EURUSD has plunged and is nearing November's low of 14625. A break below there opens up a move to 14410/50. The recent NZDUSD rally is known in Elliott as a C wave. C waves convince the vast majority that the old trend (bullish) has resumed when in fact the new trend (bearish) is about to accelerate.
