It's not even a bazooka. It's more like a nuclear bomb.
The shared currency clawed back from yesterday's low of $1.0766 to $1.0860 as German Industrial Production unexpectedly rises by 0.3% month-on-month in February.
The Cable dipped to $1.2161 yesterday after British Prime Minister Boris Johnson was moved to intensive care after his coronavirus symptoms worsened.
The yen soared to 108.85 against the dollar after Japanese Prime Minister Shinzo Abe unveiled fiscal stimulus worth almost $1 trillion to offset the economic impact of the Covid-19.
The Australian dollar lifted to $0.6162 after the Reserve Bank of Australia indicated it would slow the pace of its bond buying, which nudged up long-term yields and it steadied its interest rate at 0.25%.
The South Africa's rand rebounded to 18.40 per dollar as risk sentiment was cheered by signs the spread of the novel coronavirus was easing.
The U.S dollar remained unchanged at 40.24(selling) against the Mauritian Rupee as demand for foreign currencies remained 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.