For investors as a whole, returns decrease as motion increases.
USD
EUR/USD
The Single currency directionless near $1.0820 undermined by German minister calls for a temporary ban on Chinese takeovers of companies.
GBP/USD
The Pound slumped to a seven-week low of $1.2073 on Friday, before bouncing back to $1.2100 in Asia this morning, while fresh claims concerning the no-deal Brexit and BOE’s readiness to act kept severe pressure on the pair.
USD/JPY
The Japanese yen eased to 107.00 per dollar after data in Japan confirmed the world’s third largest economy slipped into recession in the first quarter.
AUD/USD
The Aussie consolidated a bounce from $0.6410 to $0.6445 cheered by broad US dollar weakness led by Powell’s remarks, and amid a rally in gold to 7.5 year highs at $1,762.
USD/ZAR
The South Africa's rand fell to 18.50 against the US dollar as fears about a resurgence of coronavirus infections hurt sentiment toward the emerging markets.
USD/MUR
The USD/MUR edged back to 40.30(selling) this morning, following Bank of Mauritius’ intervention on last Friday to sell USD 30 million during the week ended 15th May 2020.
- 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
