Geopolitical developments have darkened clouds over the global economy

•  The dollar gained in yesterday’s trading session, rising for three straight sessions
• Civilian killings in Ukraine and the prospect of increased sanctions pushed investors to seek safety
• The dollar is bouncing higher as geopolitical developments have darkened clouds
• Data on Friday showed U.S unemployment hit a two-year low of 3.6% last month

Forex market

The dollar gained yesterday, rising for three straight sessions, as civilian killings in north Ukraine and the prospect of increased sanctions pushed investors to seek safety in the greenback. The U.S. currency also continued to benefit from a strong non-farm payrolls report for March that backed expectations for a hefty half a percentage point tightening by the Federal Reserve at next month's meeting. 

The dollar is bouncing higher as geopolitical developments have darkened clouds over the global economy. The buck was already enjoying jobs-inspired gains after solid hiring and lower unemployment cemented expectations of super-sized U.S. rate hikes this year. French President Emmanuel Macron called for new sanctions and said there were clear indications

Economic Calendar

Russian forces had committed war crimes in the town of Bucha. The Kremlin denied any accusations related to the murder of civilians in the town. German Defence Minister Christine Lambrecht said the European Union should discuss ending Russian gas imports. Russia supplies some 40% of Europe's gas needs. 

In late morning trading, the dollar, which measures the greenback against a basket of peers rose 0.3% to 98.89. Data on Friday showed U.S. unemployment hit a two-year low of 3.6% last month, leading investors to assess if the numbers would strengthen the Fed's resolve to tackle inflation by lifting rates sharply. 

Forex, CFD and Crypto Cashback Programme

The euro, which has been under pressure due to worries about the economic damage from the war in Ukraine, fell 0.6% to 0.4% versus the dollar to $1.0988. Against sterling, the euro fell to a six-day low and it was last down 0.6% at 83.73 pence. More sanctions of course also mean that the risk of energy disruptions in Europe rises, because of our own sanctions or because Russia might get completely serious with its counter-sanctions rather than just changing the payment mode for natural gas. 

In my view, the risk of significant euro weakness increases. Fed funds futures on Friday have priced an 80% chance of a 50 basis point hike next month.

Euro-EUR

The single currency fell as investor morale in the eurozone fell to its lowest level in nearly two years in April, a survey showed yesterday, pointing to the beginning of a recession in the second quarter of 2022. Sentix's index for the eurozone fell to -18.0 in April from -7.0 the previous month, hitting its lowest level since July 2020. Overall, the EUR/USD traded with a low of 1.0979 and a high of 1.1036 before closing the day around 1.0981 in the New York session.

Crypto Signals

Japanese Yen-JPY

The Japanese Yen steadied as the dollar gained yesterday, rising for three straight sessions, as civilian killings in north Ukraine and the prospect of increased sanctions pushed investors to seek safety in the greenback. The U.S. currency also continued to benefit from a strong non-farm payrolls report for March. Overall, the USD/JPY traded with a low of 121.16 and a high of 122.41 before closing the day around 122.13 in the U.S session.

British Pound-GBP

The British Pound gained versus the euro yesterday as traders continue to bet on a rapid pace of interest rate rises from the Bank of England. Despite much focus on the heaviest cost of living raise since British records began (the 1950s), the market still prices the BoE Bank Rate at 2.20% at the December meeting later this year. Overall, the GBP/USD traded with a low of 1.3157 and a high of 1.3223 before closing the day at 1.3183 in the New York session.

Trade Forex pairs with spreads 5X lower than those of top Forex brokers

Canadian Dollar-CAD

The Canadian Dollar traded lower as a record number of Canadian businesses are facing capacity pressures amid intense labor shortages and ongoing supply chain difficulties, with many expecting significant wage and input price growth, a regular Bank of Canada survey said yesterday. The central bank's Business Outlook Survey Indicator dipped in the first quarter. Overall, USD/CAD traded with a low of 1.2462 and a high of 1.2550 before closing the day at 1.2473 in the New York session.

Australian Dollar-AUD

The Australian Dollar struggled at these levels for the past two weeks but has tentatively broken higher. China reported a record number of covid cases but that might be outweighed by the restart of idled Evergrande construction projects. The broader signal there is that Beijing is pulling on growth levers that will demand more commodity exports from Australia. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

Day Trading or Swing Trading?

Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has lost 0.30%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has lost 0.19%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has lost 0.11%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has lost 0.12%.

Sterling-Swiss GBP/CH

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has gained 0.02%.

Elliott wave forex trading idea for AUD/USD and USD/JPY acceleration

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Euro zone inflation surged to 7.5% in March, hitting another record high

• The nonfarm payrolls report showed that 431,000 jobs were added last month
• The unemployment rate dropped to 3.6%, the lowest since February 2020
• Eurozone manufacturing growth slowed sharply last month data showed on Friday

Forex market

The dollar rose on Friday, helped by robust U.S. job growth numbers for March that firmed market expectations that the Federal Reserve will increase the pace of interest rate hikes in an effort to blunt rising inflation. 

The nonfarm payrolls report showed that 431,000 jobs were added last month, versus estimates of 490,000, while data for February job increases were revised higher. The unemployment rate dropped to 3.6%, the lowest since February 2020. Another strong print is sustaining expectations for two or more jumbo-sized Fed hikes in the coming months and has added to the momentum driving the dollar higher. 

Economic Calendar

Futures contracts tied to the Fed's policy rate fell after the jobs report, pointing to expectations that the Fed will hike by a half-a-percentage point at each of its next three meetings to deal a more decisive blow to price pressures. That would follow a quarter-point hike on March 16, when the Fed embarked on a new tightening cycle. 

The dollar index, gauges the greenback against six counterparts, including the euro. For the week, the dollar was nearly flat, having rebounded from a midweek decline as hopes over Russia-Ukraine peace talks faded, boosting safe-haven demand for the American currency. Global risk sentiment continues to deteriorate and lift the greenback as hopes for a ceasefire in Ukraine fade. 

Live Market Update on Indices and Bitcoin in Focus

The euro failed to find any support from surging eurozone inflation, which climbed to 7.5% in March, hitting another record high and raising pressure on the European Central Bank (ECB) to rein in runaway prices even as growth slows sharply. We still think that as much as inflation is set to intensify further in the Eurozone, the ECB is likely to wait it out this quarter to see how the bloc evolves with the shock emanating from the war in Ukraine, though we think the ECB is on borrowed time and will need to hike this year. 

The euro was 0.24% lower versus the greenback at $1.10395. The single currency retreated sharply on Thursday after hitting a one-month high earlier in the session, as hopes for a ceasefire in Russia's invasion of Ukraine faded. Peace talks were ongoing on Friday. Another commodity-linked currency, the Australian dollar, rose 0.15% to $0.74965. The Russian rouble has recovered to levels last reached in the days before Russia launched its invasion in February.

Buy and Sell over 250 crypto derivatives with ultra-low spreads

Euro-EUR

The single currency traded lower despite Eurozone inflation surged to 7.5% in March, hitting another record high with months still left before it is set to peak, raising pressure on the European Central Bank to rein in runaway prices even as growth slows sharply. Consumer price growth in the 19 countries sharing the euro accelerated from 5.9% in February. Overall, the EUR/USD traded with a low of 1.0979 and a high of 1.1036 before closing the day around 1.0981 in the New York session.

Japanese Yen-JPY

The Japanese Yen fell as The dollar rose on Friday, helped by robust U.S job growth numbers for March that firmed market expectations that the Federal Reserve will increase the pace of interest rate hikes in an effort to blunt rising inflation. The nonfarm payrolls report showed that 431,000 jobs were added last month. Overall, the USD/JPY traded with a low of 121.16 and a high of 122.41 before closing the day around 122.13 in the U.S session.

British Pound-GBP

The British Pound edged lower against the U.S dollar on Friday and was on track for a weekly loss of around 0.5%, as optimism surrounding peace talks in Ukraine faded, while UK manufacturing growth hit a 13-month low. The S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 55.2 in March. Overall, the GBP/USD traded with a low of 1.3157 and a high of 1.3223 before closing the day at 1.3183 in the New York session.

Free Trading Webinars

Canadian Dollar-CAD

The Canadian Dollar edged lower against its U.S counterpart on Friday, extending a modest weekly decline, as oil prices fell and the gap between U.S. and Canadian bond yields moved in favor of the U.S bonds. For the week, the currency weakened 0.3%, after touching on Wednesday its strongest intraday level in nearly five months. Overall, USD/CAD traded with a low of 1.2462 and a high of 1.2550 before closing the day at 1.2473 in the New York session.

Australian Dollar-AUD

The Australian Dollar has been bumping up against resistance levels as the underlying fundamentals of the Australian economy remain strong. The backdrop of elevated commodity prices and a relatively healthy economic national balance sheet is underpinning the currency. By historical standards, the Aussie is below the long-term average since the float in 1983, while the terms of trade remain at multi-generational highs. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

Forex VPS

Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has lost 0.30%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has lost 0.19%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has lost 0.11%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has lost 0.12%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has gained 0.02%.

Trading Signals and Trading Forecasts

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Live Market Update on Indices and Bitcoin in Focus

Join Simon Massey, a lead trader at Trade Room Plus, as he takes over the Trade Zone mantle for April. Register for this exclusive and free 30-minute webinar to help plan your next trade in real-time, as Simon looks ahead at the potential trading opportunities taking place as the weekend approaches. 

In this webinar, you'll learn:

• The potential trading opportunities currently in play in the indices, forex, crypto, and commodities markets 
• The key trade levels to set your trade entry and exit points 
• Gain an understanding of Simon's own trading approach and the every day trading strategies he uses
• Find out how the week's events may affect the markets before Friday's market close

Join the First Live Market Update of April, this Wednesday!

Watch the video below to get Simon’s latest insights

The weaker dollar has provided a level of support for gold

US stock markets: U.S stocks rose yesterday, with the Dow and S&P notching their fourth straight session of gains, on optimism some progress was being made toward a deal to resolve the conflict between Russia and Ukraine. 

Russia pledged to cut down on military operations around Kyiv and in northern Ukraine, while Ukraine proposed adopting a neutral status, the first sign of progress toward peace in weeks. Prices eased for oil and other commodities, helping calm concerns about rising inflation and the path of monetary policy by the Federal Reserve, which has started hiking interest rates to combat rising prices. 

If you look over the course of the month this war has been going on, the market has priced in much more bad news than good news. It certainly shows the market has a naturally coiled spring that will be a reaction function to any good news and we saw a bit of that this morning, but everything will have to be taken with a grain of salt and we will have to see things actually play out versus being actually talked about.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.97% to hit a new 1-month high. The best performers of the session were Visa Inc. Class A, which rose 3.33% or 7.35 points to trade at 228.12 at the close. Meanwhile, Nike Inc. added 3.21% or 4.33 points to end at 139.14 and Boeing Co was up 3.00% or 5.64 points to 193.80 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 1.58% or 2.95 points to trade at 183.81 at the close. Chevron Corp declined 1.22% or 2.03 points to end at 164.32 and UnitedHealth Group Incorporated was down 0.48% or 2.47 points to 510.73.

Buy and Sell over 250 crypto derivatives with ultra-low spreads

NASDAQ 100

The NASDAQ index gained 1.84%. The top performers were IGM Biosciences Inc. which rose 96.73% to 29.49, PhaseBio Pharmaceuticals Inc. which was up 46.09% to settle at 1.68 and China SXT Pharmaceuticals Inc. which gained 45.40% to close at 0.29. The worst performers were NeoGenomics Inc. which was down 29.79% to 12.49 in late trade, Aveanna Healthcare Holdings Inc. which lost 26.72% to settle at 3.95 and Stryve Foods Inc. which was down 24.81% to 1.50 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices ended 2% lower as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. 

Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. U.S crude was down 1.6%, at $104.24. Ukrainian and Russian negotiators met in Turkey for the first face-to-face discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." 

Join FREE online forex trading sessions and share the experience and knowledge of finance professionals

Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed the adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices rose today, supported by a dip in the U.S dollar and Treasury yields, though signs of progress in Russia-Ukraine peace talks dented the metal’s appeal as a safe haven and kept gains in check. Spot gold was up 0.2% at $1,922.65 per ounce after the metal hit its lowest since Feb. 28 on hopes for a negotiated end to the Ukraine conflict. 

Powerful tools to integrate into your trading strategies

U.S. gold futures rose 0.6% to $1,928.80. City Index senior market analyst Matt Simpson said investors remain wary of Russia’s intentions following its pledge to scale down “military operations” around Kyiv and another city. Ukraine reacted with skepticism, and some Western governments fear Moscow's aims to intensify its offensive in other parts of the country.

Simpson said gold benefitted from both currency and bond market trends. The dollar index held near a more than one-week low hit in the previous session, making gold less expensive for other currency holders. U.S benchmark 10-year yields also slipped from near three-year highs, and lower yields decrease the opportunity cost of holding non-yielding bullion. 

Crypto Crusher

The weaker dollar has provided a level of support for gold. Bond prices bounced from a key level of support yesterday which helped push yields lower despite the supposed risk-on rally seen across equities. And that’s provided another pillar of support for gold. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, slipped 0.2% to 1,091.44 tonnes on Tuesday. Spot silver rose 0.3% at $24.83 per ounce and platinum was up 0.1% to $983.78. Palladium fell 0.5% to $2,137.78, after dipping to a more than the two-month low of $2,032.97 in the last session. 

The auto-catalyst metal has tumbled nearly 40% since scaling an all-time peak on March 7 as supply concerns from Russia eased.

Forex, CFD, and Crypto Trading Broker Services

Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures fell four percent and corn fell nearly three percent yesterday as comments by Russia and Ukraine following negotiations in Turkey raised hopes of a ceasefire in a conflict that has disrupted massive grain exports through the Black Sea region. The wheat market has been particularly turbulent since Russia invaded Ukraine on Feb. 24. Both countries are major wheat exporters, while Ukraine is also a significant global corn supplier.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Reports of progress in peace talks between Russia and Ukraine lifted the euro

• The dollar had risen as much as 3.4% since Russia invaded Ukraine, declined 0.596% to 98.496
• Any step toward a ceasefire or potential peace deal in Ukraine would support the euro
• The Japanese currency had fallen to its lowest level since 2015 on Monday

Forex market

The dollar fell against a basket of peer currencies yesterday as reports of progress in peace talks between Russia and Ukraine lifted the euro and reduced the safe-haven appeal of the greenback. 

Russia said in talks in Istanbul yesterday that it would scale down military operations around Ukraine's capital and north, while Kyiv proposed adopting neutral status, in confidence-building steps that were the first signs of progress towards negotiating peace. The dollar, which had risen as much as 3.4% since Russia invaded Ukraine, declined 0.596% to 98.496, as traders looked to currencies deemed riskier.

Economic Calendar

Risk appetite is back and I think you're seeing potentially a major turning point in the war in Ukraine as Russia signals talks have been constructive and there's hope that there could be a ceasefire. The euro was up 0.81% at $1.1076, having earlier hit its highest level since March 17. The euro today is enjoying a relief rally built on constructive peace talks, lower oil, and expectations that eurozone data this week could strengthen the case for the ECB (European Central Bank) to raise interest rates. 

Any step toward a ceasefire or potential peace deal in Ukraine would support the euro, as Europe is seen suffering a significant economic blow from the conflict, which began with Russia's invasion on Feb. 24 and sent energy prices soaring. 

Day Trading or Swing Trading?

Inflation figures of eurozone members for March will begin to roll in on Wednesday, with the composite release on Friday. The greenback slid 0.89% against the yen to 122.83 yen. The Japanese currency had fallen to its lowest level since 2015 on Monday. Japanese Finance Minister Shunichi Suzuki said the government would closely watch currency moves to prevent a "bad" weak yen that hurts the economy. While the comments from Japanese officials overnight are unlikely to reverse the yen weakening trend on their own, they should at least help to slow the recent fast pace of yen selling. 

The Bank of Japan continued to defend a key yield cap by offering to buy unlimited amounts of 10-year government bonds.

Smart Trading Tools

Euro-EUR

The single currency gained as markets took a positive view on peace talks in Ukraine. Heavily sold on fears of the economic fallout from the war in Ukraine and nerves about the risk of the conflict spreading west, the euro has been a beneficiary of hopes for peace. Markets appear to have taken an optimistic stance before peace talks have yielded any result. Overall, the EUR/USD traded with a low of 1.0979 and a high of 1.1036 before closing the day around 1.0981 in the New York session.

Japanese Yen-JPY

The Japanese Yen fought recovered from seven-year lows as traders speculated that officials were uncomfortable with its recent weakness. Equity markets continued a pick-up in sentiment on Wall Street as markets became hopeful that the Ukraine conflict could end - although this move ran out of steam as European shares opened in the red. Overall, the USD/JPY traded with a low of 121.16 and a high of 122.41 before closing the day around 122.13 in the U.S session.

Best Forex Trading Platform

British Pound-GBP

The British Pound rose against the dollar after Ukrainian and Russian negotiators announced progress in their peace talks. Russia promised to scale down its military operations around Kyiv and northern Ukraine, while Ukraine proposed to adopt a neutral status with international guarantees to protect it from attack. Overall, the GBP/USD traded with a low of 1.3157 and a high of 1.3223 before closing the day at 1.3183 in the New York session.

Canadian Dollar-CAD

The Canadian Dollar edged higher as signs of progress in peace talks between Russia and Ukraine boosted investor sentiment. Canada's curve has been flattening as investors bet the country's central bank will begin hiking its key interest rate in 50 basis point increments, with the first of the rarely used upsized moves possibly coming as soon as next month. Overall, USD/CAD traded with a low of 1.2462 and a high of 1.2550 before closing the day at 1.2473 in the New York session.

Trading Signals and Trading Forecasts

Australian Dollar-AUD

The Australian Dollar has been hovering around 75 cents for a week now, as geopolitical and fundamental drivers are unable to give clear direction. The geopolitical landscape emanating out of the Ukraine war has added to positive investor sentiment inequities, with Russia saying that they are open to negotiation for de-escalation. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has lost 0.30%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has lost 0.19%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has lost 0.11%.

Customize your trades with cutting-edge widgets, trading apps, and charts

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has lost 0.12%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has gained 0.02%.

Elliott wave forex trading idea for AUD/USD and USD/JPY acceleration

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Elliott wave forex trading idea for AUD/USD and USD/JPY acceleration

Hello traders and investors. I am Radi Valov, a professional trader, and today I would like tо share an update on my forex analysis of AUD/USD and USD/JPY.

The Forex market as a whole has been relatively predictable in recent weeks with no surprises from my previous analyses. Anyone who wants to see my previous forex analysis of these two currency pairs with larger and older time frames can see them below:

11.03.2022: Elliott waves forex trading idea for USD/JPY medium-term upward cycle

07.03.2022: Elliott waves forex trading idea for AUD/USD

15.02.2022: Elliott waves forex trading idea for EUR/USD GBP/USD and AUD/USD

09.02.2022: Elliott waves forex signal for USD/JPY

Today I will start with the Australian Dollar vs United States Dollar.

AUD/USD Weekly Chart

After the upward movement of the last two weeks of the weekly forex chart, we have confirmation that the downward wave (B) or (X) has ended and a new upward cycle is developing. I expect in the medium term to move up the price channel and reach the top of the channel in the first half of next year.

AUD/USD Daily Chart

On the daily chart, after my last forex analysis, a bottom is formed for a gap X wave, after which we have a new completed triple in the upward direction (denoted as wave (w) on the chart). Since the beginning of the week, we are in a corrective downward movement for wave (x), which at this stage may not be over yet. My expectations are that after the completion of this side correction, the upward movement may continue with a potential 1st target zone around 0.7750.

Let's move on to USD/JPY, United States Dollar vs Japanese Yen.

USD/JPY Weekly Chart

After my last analysis, this currency pair made 1000pips, a very serious upward acceleration without any adjustments.

USD/JPY Daily Chart

My last forex analysis was at the bottom of wave 4, and the targets I set then for the development of wave 5 or according to alternative scenario 3 have been reached. The best movement in this currency pair at this stage is over.

According to my preferential forex analysis with red on the forex trading chart, the structure allows the whole wave after the bottom in the area of 102.50 to be completed (marked with (A) on the graph). This means that in the coming months will develop a lateral downward movement for wave (B).

My alternate scenario assumes that wave iii of 3 is now complete. This means that a correction for wave iv will develop in the coming weeks, which will probably find support in the area around 121, after which we will see a new peak in the area around 126. Then there will be a new side correction, which will probably find support in the zone around 122-121 and will be followed by a final peak in the zone around 126+.

What is Forex Trading?

What is Negative Balance Protection?

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.