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USD
EUR/USD
The single currency retreated to $1.0935 this morning after rallying to an intra-day high at $1.0976 in Europe yesterday on continued optimism over Franco-German proposal for a recovery fund together with upbeat German and EU ZEW sentiment data.
GBP/USD
In the UK, the British Pound firmed at $1.2256 ahead of Consumer Price Index (CPI) for April month due today.
USD/JPY
The Yen sparked a broad slump to 108.00 level on Tuesday after Bank of Japan announced it will hold an emergency policy meeting on Friday( 0000 GMT) to sign off on a new lending program to helps firms combat the fallout from the coronavirus crisis.
AUD/USD
The Aussie held onto gains to $0.6545 despite a Bloomberg report showed China was considering targeting more Australian exports including wine, seafood, fruit, and dairy, adding to the 80% tariff imposed on barley and restrictions placed on meat from some of Australia’s largest abattoirs.
USD/ZAR
The Rand inched up to 18.33 per dollar, tracking higher commodity prices and spurred by optimism about the re-opening of economies around the world, amid SARB interest rate decision on Thursday.
USD/MUR
On the domestic market, the USD/MUR unfazed at 40.30(selling).
10:00 - GBP - CPI (YoY)(Apr)
13:00 - EUR - CPI (YoY)(Apr)
16:30 - CAD - Core CPI (MoM)(Apr)
17:30 - GBP - BoE Gov Bailey Speaks
18:30 - USD - Crude Oil Inventories
22:00 - USD - FOMC Meeting Minutes
- 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
