The market has been very slow for the last few sessions. We suspect that the pairs are trapped in a corrective price action, and that will send the USD lower in the near-term, particularly against the EUR, GBP and CHF. Commodity currencies such as the AUD and CAD could stay under pressure, or maybe sideways, while metals, oil and other commodities are weakening.

Our focus is still on the EUR/USD where we see a three wave move from the top which we think its corrective wave (iv), that already tested 38.2% retracement area so uptrend could resume soon up in wave v).

EUR/USD 1h EUR/USD 1h Elliott Wave Analysis

The USD/CHF is also slow and sideways in 45 pip range, with the personality of a corrective price action. As such, pause around 0.9100 area is most likely just another correction within a downtrend. We believe its wave iv) which will send prices down in wave v) towards 0.9050 this week. The only question is from where weakness will resume. From current prices or from 0.9160 where it’s a 38.2% retracement area.

USD/CHF 1h USD/CHF 1h Elliott Wave Analysis