I know where I’m getting out before I get in.
USD
EUR/USD
The shared currency consolidated near $1.0949 in early Asian session as China reported the highest number of new daily cases in nearly six weeks and fueled fears about the second wave of COVID-19 outbreak.
GBP/USD
The Cable spiked to $1.2505 after Prime Minister Boris Johnson left the hospital for treatment of COVID-19, the illness caused by the coronavirus.
USD/JPY
The safe-haven yen rallied to 107.80 per dollar amid coronavirus-led risk-off US dollar pullback.
AUD/USD
The Aussie sidelined at $0.6345 as investors shunned risky trades while waiting for Tuesday’s Chinese trade data to provide fresh clues.
USD/ZAR
The South African's rand firmed at 18.07 against the greenback despite its economy remained gloomy amid Covid-19.
USD/MUR
The pair stayed put at Rs39.75/USD(selling) on the domestic market, tracking thinned holiday trading amid Easter Monday.
• 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
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).
