It's not even a bazooka. It's more like a nuclear bomb.
USD
EUR/USD
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.
GBP/USD
The Cable dipped to $1.2161 yesterday after British Prime Minister Boris Johnson was moved to intensive care after his coronavirus symptoms worsened.
USD/JPY
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.
AUD/USD
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%.
USD/ZAR
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.
USD/MUR
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.
