If opportunity doesn't knock, build a door.
The fiber opened steady at $1.0845 this morning on news that the EU could open a legal case against Germany over ECB bond-purchases ruling.
The cable climbed to $1.2420 on Monday after British Prime Minister Boris Johnson outlined plans to gradually ease coronavirus lockdown restrictions.
The yen fell to 106.90 versus the U.S dollar on Monday after dovish BOJ minutes from April’s monetary policy meeting, stating downside risks still very high on pandemic and Japan’s economy facing contraction.
The Australian dollar firmed at $0.6545 despite simmering Australia-China trade tensions, stemming from Australian PM Scott Morrison’s lobbying for an inquiry into the origins of the coronavirus.
The South African rand surged to 18.25 per dollar with sentiment toward risk and emerging market currencies boosted by optimism about the re-opening of some economies around the world.
On the domestic market, the USD/MUR opened flat at 40.45(selling) post-BOM’S intervention to sell USD 30 Mio last week.
- 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