EUR/USD Retreats From 10-day High
Following a 3-day streak, eurodollar finally saw a rejection at $1.1340. German inflation CPI data added a negative sentiment to the pair, which provided investors with sell opportunities. Despite an array of poor US data releases which were expected to shift appetite, the pair remained near $1.13 for the rest of yesterday’s session.
Will EUR/USD Correct Lower?
EUR/USD ($1.1320): It seems that the 3-session long impulse wave saw an end on Thursday. We can now expect prices to correct a little lower, provided the ascending trendline weakens. The slide down to the first corrective wave (a), indicates that there is room to move lower near wave (c) zone. This must follow the wave (b) completion to the upside, which seems nearly done.
GBP/USD Falls Despite Article 50 Extension
With parliament supporting an extension of the Brexit date, market participants expected to see prices reacting positively to the critical news. Instead, the pair fell from a 9-month high of $1.3380, plummeting over a hundred pips against the dollar. Perhaps investors don’t think PM May’s suggestion of a June deadline will be enough.
Should we Expect a Rise?
GBP/USD ($1.3250): Pound was rejected near $1.3224 on Thursday. As a previous high, this level is likely to maintain the bullish bias intact. However, the bearish divergence seen on the MACD could push prices lower for a deeper correction. From a bullish perspective, there is room to move higher towards the $1.34 and $1.3540 extensions. This would complete wave (v) of the impulse upside wave.
Gold Correction Continues on Trade Optimism
Despite the reversal seen near $1312 on Wednesday, prices head back up. Chinese data supported the bearish move as the economy continues to print problematic figures. Positive trade war narratives, however, supported the rejection at $1300. President Trump reported that he expects a trade deal with China within the next four weeks.
Will Gold Move Higher?
Since we are still completing a bearish cycle, there’s a good chance that corrective wave (c) sees an end a tad higher. A magnet zone is set near $1320/1325, as a confluence between the bearish golden ratio and bullish golden extension is seen around those levels. Meanwhile, bulls could be attracted by the ascending trendline of the open triangle pattern that may end near the critical magnet zone too. That could help the impulse wave (v) in completing the bullish move and start correcting.