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The Single currency opened higher at $1.1140, after climbing by 1.8% last week, broadly boosted by plans for an EU stimulus recovery package.
The pound spiked to $1.2383 on news that the British’s government is planning to launch a big stimulus package before the summer with a focus on creating jobs and infrastructure projects to help drag the economy out of the coronavirus crisis.
The Japanese yen crumbled from a high of 107.07 to 107.53 per dollar as U.S President made no move to impose new tariffs on China during a news conference on Friday where he outlined his response to Beijing’s tightening grip over Hong Kong.
The Aussie surged above $0.67 on Monday as Chinese Caixin Manufacturing PMI boosted the investors' sentiment on China’s coronavirus recovery on and wagered on an easing in Sino-U.S tensions.
The South Africa's rand firmed at 17.33 against the dollar early on Friday despite South Africa's trade balance recorded a deficit of 35.02 billion rand ($2.01 billion) in April from a revised surplus of 23.94 billion rand in March, data from the revenue service showed on Friday.
The USD/MUR unfazed at 40.45(selling) despite a weakening U.S dollar across the board.
11:55 - EUR - German Manufacturing PMI (May)
12:30 - GBP - Manufacturing PMI (May)
18:00 - USD - ISM Manufacturing PMI (May)
- From an Elliott Wave standpoint, USDCHF could potentially unfold into compelling impulsive Wave C of the zigzag correction of Wave (2) to a narrowing region 0.9550 (50% retracement of Wave (1)) to 0.9395 (100% projection of Wave A through B) in the near term trend, from the downside bias from April 6th high of 0.9797.
- Price could immediately start to shoot back up into Wave (3) on a longer perspective.
- Piercing above the resistance 0.9905 would endorse the structure.
- Alternatively, broader bearish invalidation of Elliott Wave Structure rest at 0.9191 of March 9th low while Relative Strength Index signals a bullish recoil higher for the pair.
• 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.
• At 107.70 today, USD/JPY is percolating towards its target from 110.41 to 107.84, as per chart.
• On a side note, resumption of a bullish USD/JPY would mark an invalidation of the Elliott Wave structure above 112.22