This is a very different animal from the Great Depression.
USD
EUR/USD
The shared currency recovered from a low of $1.0771 to $1.0818 after data last week showed companies in the United States shed jobs at break-neck speed as the COVID-19 pandemic leads the global economy into a deep recession.
GBP/USD
The Cable tumbled to $1.2214 on Monday on news that British Prime Minister Boris Johnson was admitted to hospital for tests after showing persistent symptoms of the coronavirus.
USD/JPY
The yen nosedived to 109.12 per dollar on Japanese reports that Prime Minister Shinzo Abe may declare a state of emergency as early as Tuesday to curb an alarming acceleration in coronavirus infections.
AUD/USD
The Australian dollar mounted to $0.6040 as investors found cheer in slowing death rates in some of the countries worst hit by the coronavirus, lifting share markets across Asia.
USD/ZAR
The South Africa's rand plummeted to 19.10 against the US dollar as Fitch downgraded South Africa's credit rating to BB from BB+ on Friday, coming a week after Moody's cut the country's grade to junk.
USD/MUR
The U.S dollar inched by 5 cents to 39.34(buying) against the Mauritian Rupee as demand for foreign currencies remain upbeat on the domestic market.
The Single currency plunged to a low of $1.0771 last week, before trimming back some losses to $1.0825 this morning, as safe-haven demand boosted the U.S dollar higher across the board.
On a technical perspective, the EUR/USD appears to be tracking the bearish Head & Shoulders (H&S)pattern highlighted last week.
The H & S neckline, as illustrated on the 10 mins chart, could possibly act as magnet in the coming sessions that would propel the EUR/USD higher near $1.0850/75.
However, the pair still remain vulnerable to further downside possible near $1.0700 (H &S target level).
• After rallying to the downside from a high of 112.22 to 101.17 amid global pandemic threat, USD/JPY has been in a correcting mode since 9th March 2020 and seemed to have recently completed an W-X-Y Double Zig-Zag structure of Wave (2) reaching a high of 111.64 on 27th March 2020.
• Two strong indicators were flashing a trend reversal: ending diagonal at Wave 5 of Wave c and bearish RSI divergence.
• On the hourly chart, as per Elliott Wave analysis, the pair might resume its downwards trend targeting 100.64 - 93.78 to unfold Wave (3), a projection of 100%-161.8% of Fibonacci level.
• USD/JPY is percolating towards its target from 110.41 to 107.84, as per chart below.
• On a side note, resumption of a bullish USD/JPY would mark an invalidation of the Elliott Wave structure above 112.22.
