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The shared currency climbed to $1.0845 after French President Macron expressed support for joint Eurozone debt issuance to counter economic impact from Covid-19.
The Cable tumbled to $1.2450 on critics that UK PM Johnson missed initial emergency COBRA (Cabinet Office Briefing Room A) meetings during the crucial weeks when the virus first arrived in the UK.
The safe-haven yen receded from high of 107.12 to 107.85 per dollar amid broad-based dollar strength as global growth fears hit oil prices and commodity currencies on early Asian sessions.
The Aussie consolidated at $0.6350 after China trimmed the one-year loan prime rate by 20 basis points, taking it to 3.85%, and lowered the five-year rate by 10 basis points to 4.65%.
The South African rand firmed at 18.87 against the greenback as glimmers of risk appetite returning to global markets.
The pair idled at 40.25 (selling) on the domestic market.
- 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