There are some things you learn best in calm, and some in storm.
USD
EUR/USD
The single currency steadied at $1.08 as rising Sino-U.S. tensions and worries about a second wave of coronavirus infections rattled investors.
GBP/USD
The cable seesawed around $1.2210 from a low of $1.2170 yesterday on Brexit woes as the European Commission launched legal action against UK and Northern Ireland fisheries on Thursday, accusing it of failing to comply with EU law on free movement. Additionally, the British government reiterated its refusal to extend the Brexit transition deadline beyond December.
USD/JPY
The Japanese yen edged lower to 107.23 per U.S dollar amid talks of additional U.S stimulus, while White House Advisor Kudlow was out on the wires late on Thursday, stating that the Trump administration could be open to targeted aid to states related to the pandemic.
AUD/USD
The Australian Dollar mounted to $0.6456 despite a mixed set of Chinese economic data on Friday, that is, a better-than-expected increase in industrial output in April while vehicle retail sales disappointed with a sharp decline.
USD/ZAR
South Africa's rand weakened to 18.44 per dollar on Thursday as demand for emerging currencies continued to ebb due to growing concerns over the impact of the coronavirus on the global economy.
USD/MUR
The USD/MUR opened flat at 40.45(selling) this morning, tracking a steady EUR/USD.
12:00 - EUR - German GDP (QoQ)(Q1)
16:30 - USD - Retail Sales (MoM)(Apr)
18:00 - USD - JOLTs Job Openings (Mar)
- 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
