The markets continued to consolidate for most of the week. The USD consolidated for the week, but ended the week on a high note The AUD/USD is at a critical support level, and the USD/CAD broke a declining resistance. Against the currencies of another low interest rate country, Japan, the USD however remains pressured.

EUR/USD - Assessing Wave Count

4H: EUR/USD was in consolidation, possible a wave 4 in the wave a until the market rejected a rally above 1.29. The decline is likely wave 5 of a so a b wave can be expected to follow. That is my preferred count, which would be followed by a wave c. The RSI during this time should mainly stay below 60.

Currency markets are relatively quiet as traders are on the sidelines ahead of the key US employment report. The usual safe havens, the Swiss franc, Japanese yen and US dollar softened slightly as the rally in risk continued overnight.