After another positive day for the USD yesterday, the markets are now slowing down ahead of the important Non-Farm Payrolls report. Based on the sharp decline on EURUSD and GBPUSD, as well as USDCHF we would not be surprised to see further strength of USD after NFP report.
The sharp, 230 pip decline on EURUSD in the last 24 hours must be a wave iii) in action that can reach levels around 1.2890 in the next session or two. Once wave iii) is done, we will keep an eye wave iv) bounce and then on a new leg down. 1.3108 is now a critical level. As long this one will stay in, the EURUSD remains in bearish mode.
EURUSD 1h Elliott Wave Analysis
Yesterday USDJPY hit a new high which we see it as a fifth wave of an impulsive rally from 103.53. We know that after five waves correction follows, so be aware of a new downward corrective reversal. A divergence on RSI also suggests that upside is limited.
USDJPY 1h Elliott Wave AnalysisÂ
