The USD is falling since yesterday as the FED made it clear that it is not ready to raise rates, but at least one hike is expected later this year. I suspect that their biggest concern is a strong USD from the past 12 months which will gain even more with a rate hike. So actually they want a lower USD before they change policy.
We see EURUSD breaking out of a triangle so the pair can be targeting the 1.1530 area, projected by a triangle measurement.
Elliott Wave Analysis – EURUSD 1h Chart
So it seems that the USD could stay weak for some time now, so our focus should be on stronger currencies. One clear candidate is the pound, which is gaining on good figures from yesterday and expectations for a rate hike that could be in play if data stays strong in the months ahead.
Technically speaking, we see cable in an impulsive advance towards the 1.6000 short-term projected level but there will be room for even more gains after a corrective retracement in one of a coming corrective fourth waves.
Elliott Wave Analysis – GBPUSD 1h Chart
