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The shared currency clinged to gains at $1.0965 on news that US President Trump planned to reopen the US economy partially before May 1st, amid market is anticipating the Federal Reserve's Beige Book at 22:00.
The Cable spiked to a month high at $1.2646, benefiting from improved risk sentiment as some countries consider reopening their economies, and ignoring UK Office of Budget Responsibility's (OBR) scenario for a plunge of 35% in economic output in the second quarter and 13% for the full year.
The safe-haven yen bolstered to 106.91 against the greenback following the International Monetary Fund economic outlook that downgraded global GDP forecast to -3.0% for 2020 and reckoned the deepest global recession since the great depression of the 1930's.
The Aussie hammered to $0.6383 as Australian consumer sentiment collapsed in April to a 30-year low as social distancing restrictions due to the coronavirus pandemic threatened to push the country's economy into its first recession in three decades.
The South African rand plunged to 18.35 per dollar after South Africa Reserve Bank cut repo rate by 100 basis points to 4.25%.
The pair unfazed at Rs39.95/USD (selling) by US dollar weakness on the domestic market.
- 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
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).