Everything is theoretically impossible, until it is done.
The single currency slipped below $1.08 in Asia session for the first time in almost a week on U.S dollar strength while German Chancellor Merkel has tried to defuse tensions between the country's constitutional court and European institutions after judges at Karlsruhe deemed part of the European Central Bank's bond-buying scheme as partly illegal.
The cable tumbled to as low as $1.2285 on Monday during London trading hours after Prime Minister Johnson's speech about getting back to office prompted confusion, coupled with BoE’s Chief Economist warnings of long-term damages.
The yen nursed overnight losses of about 1% to sit at 107.40 per dollar this morning as the trade war between the US and China are back on the table, while Federal Reserve officials talked down the prospect of negative rates.
The Australian dollar run out of air to $0.6460 as China imposed an import ban, in an apparent escalation of Beijing’s trade war tactics, on four Australian abattoirs, a move perceived as retaliation for Australia's call for an investigation into the origins of COVID-19.
The South African rand weakened to 18.45 against the greenback on Monday as optimism over the global economic recovery faded, with investors turning back to safe-haven assets as a second wave of novel coronavirus infections hit South Korea and Germany.
On the domestic market, the U.S dollar stays King against the Rupee, spiking by 15 cents to 40.60(selling) this morning.
16:30 - USD - Core CPI (MoM)(Apr)
- 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