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The single currency extended its decline to $1.1235, as markets remained jittery following the Fed’s grim outlook last week. The market is eagerly awaiting the June 18-19 European Commission meeting on its pandemic relief proposal that EUR/USD has been banking on.
The Pound slipped to $1.2465 on a report that British officials told their EU counterparts they will not extend the deadline for trade talks beyond the end of this year, while speculation about the potential for negative BoE rates on Thursday is also dragging cable lower. All eyes on EU-UK Brexit talk at 1230 GMT today.
The Yen idled at 107.15 per dollar amid investors waiting for the Bank of Japan policy meeting on Tuesday.
The Aussie plunged to $0.6785 on Monday as fears of a second wave of the coronavirus in Beijing prompted investors to sell currencies sensitive to risk.
The South African rand tumbled to 17.28 against the greenback on Friday's reports from credit ratings agency Fitch that it expected South Africa’s economy to shrink 5.5% this year, as the coronavirus lockdown batters an economy already in recession.
The USD/MUR firmed at 40.25(selling), ignoring BOM’s intervention rate last week as lack of FCY on the domestic market continued to dominate price action.
- 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.