USD in the corrective phase

Gregor Horvat Wavetraders

Markets are slow as we are waiting for important jobs data from the US. The expectations are fewer jobs than reported last month, so it should be interesting to see if jobs are coming down, which has been expected for a while now due to higher rates. Expectations are 200k, well below that number will likely suggest that there will be fewer rate hikes going forward due to recession risk, and this can bring the USD lower. An outcome above 200k, especially around 250k or 300k would likely suggest that rates will stay stable or that FED have some room for more hikes which can give some support to the buck. Technically speaking we see USD (equal w.) now finally breaking higher into wave C about what we talked for the last few weeks. However, this C wave is a final leg of a higher-degree rally, so the upside can be limited sometime this month. We see plenty of xxx/USD pairs in an Elliott Wave corrective set-back, so we think that majors will recover at some point, but lower supports can be retested first.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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