For investors as a whole, returns decrease as motion increases.
The Single currency directionless near $1.0820 undermined by German minister calls for a temporary ban on Chinese takeovers of companies.
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.
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.
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.
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.
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