With no major economic data on the calendar and sunny summer weather beckoning outside, it almost feels as if traders are stretching the weekend out for another day before trading can start in earnest tomorrow.
Earlier today, the U.S. currency rose against most major currencies as expectations that the Federal Reserve will continue to scale back its stimulus program this week fueled demand for the greenback. What impact did these moves have on major currency pairs?
The Australian dollar reversed unexpectedly to the downside against the U.S. dollar in the last few weeks and is now trading very close to yearly lows. As such, we are now tracking a new wave count as current bearish price action is quite strong.
The British pound has been favored against many of the world’s other biggest currencies, and the Australian dollar of course has been no different. After all, the Australian dollar has been absolutely pummeled against the U.S. dollar.
The stock market is looking weak for the last 24-48 hours. German DAX also reversed significantly lower in this week so it seems that stocks are turning slightly bearish, but most likely only for another correction.
The Australian dollar has extended its weakness against the U.S. dollar in the past few trading days, but decline from the high still can be considered as a contra trend corrective movement, but more complex than on the first place.