The question isn't who is going to let me; it's who is going to stop me.
The Single currency firmed at $1.0963 as a Franco-German proposal for a common 500 billion euro ($543 billion) coronavirus-fuelled Recovery Fund that could move Europe closer to a fiscal union boosted demand for the currency
The British Pound under pressure below $1.2200 as soft inflation stoked more talk of negative interest rates from the Bank of England to bolster an economy hammered by the coronavirus pandemic.
The Japanese yen steadied at 107.70 against the greenback on mixed global sentiment on US-China tensions stemming from tweets on late Wednesday from U.S President Trump, suggesting that his Chinese counterpart Xi’s direct responsibility for a “disinformation and propaganda attack on the United States and Europe.”
The risk-sensitive Aussie erased some of its gains at $0.6616 to $0.6560 following dovish comments from the RBA Governor Lowe, iterating that the RBA was prepared to scale up its stimulative bond purchases if needed.
The South African Rand edged up on Wednesday to 18.00 versus the U.S dollar, though investors remained cautious ahead of SARB interest rates decision today.
On the domestic market, the USD/MUR stayed put at 40.30(selling) range.
11:30 - EUR - German Manufacturing PMI (May)
12:30 - GBP - Composite PMI
12:30 - GBP - Manufacturing PMI
12:30 - GBP - Services PMI
16:30 - USD - Philadelphia Fed Manufacturing Index (May)
18:00 - USD - Existing Home Sales (Apr)
22:30 - USD - Fed Chair Powell Speaks
- 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