USD/CNH drop after correction
2023.02.03 11:07
USD/CNH drop after correction
After the ECB press conference yesterday, we witnessed a nice and strong reversal in the markets, which fell sharply but rallied broadly.
More USD strength can be seen as a result of these impulsive intraday moves; however, US jobs data should not be overlooked today. Everyone believes that job data will worsen sooner or later, and if that occurs, the markets will be shocked; Stocks may initially experience a sharp decline due to the possibility of a recession before likely recovering due to dovish speculations.
This week, US stocks are doing well, but the pair isn’t yet breaking down. It persists in wave four, with the intention of completing wave four at higher levels with a wave c rally.
Therefore, metals and can be pulled lower if USD/CNH really sees more gains (only short-term). I really want to see progression down into wave five on USD/CNH for stable risk-on, but that clearly hasn’t happened yet. Technically speaking, the dollar appears to be poised for a further rise in line with USDCNH.
