No man has ever reached excellence in art or profession without having passed through the slow and painful process of study and preparation.
The shared currency recovered from a low of to $1.0815 to $1.0870 on signs of success in a COVID-19 treatment drug trial by U.S manufacturer Gilead, together with early plans to re-open the U.S. economy in a three-stage process dependent on robust virus testing and subject to state governors' discretion.
The Cable bounced back from $1.2411 to $1.2491 despite gloomy outlook by the UK government on premature lift of the country-wide lockdown, while International Monetary Fund recommended that Britain extend its post-Brexit transition period to ease uncertainty at a time when the world economy is being hammered by the coronavirus pandemic.
The safe-haven yen unfazed at 107.70 per dollar as investors weigh COVID-19 mounting damage and mixed sentiment due to uncertainty over coronavirus and the implications for getting nations back to work in order to kick start the global economy
The Aussie surged to $0.6366 in early Asian hours, unabated by China's first-quarter GDP plunged to -6.8% year-on-year, the first reversal since 1992 subdued by the outbreak, thus paralyzing production and spending.
The South African rand plummeted to 18.74 against the greenback as Moody’s revised the country’s gross domestic product (GDP) growth outlook downwards for 2020 further down to 2.5% contraction with South Africa sliding deeper into recession.
The pair steadied at 40.25 (selling) on the domestic market after Bank of Mauritius slashed the Key Repo Rate by 100 basis points, from 2.85% to 1.85% yesterday.
- 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