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The fiber cascaded to $1.0824 as European Union leaders’ Summit scheduled later today via video conferencing is closely eyed, as they seek to mitigate the economic risks induced by the virus pandemic.
The cable inched higher to $1.2360, driven by a report showing Britain's inflation rate dropped in March.
The yen sidelined at 107.80 per dollar on a rebound in crude prices from an unprecedented collapse partially calmed markets unnerved by the massive coronavirus-led drop in global demand.
The Aussie bounced back to $0.6350, hit by Australian Services PMI falling to 19.6 but benefited from a surge in exports in March.
The South African rand lifted to 18.95 against the greenback as optimism over the 500 billion rand ($26.41 billion) rescue package announced by President Cyril Ramaphosa on Tuesday gave way to concerns about economic growth.
The pair edged lower by 10 cents to 40.30(selling) on the domestic market after the Bank of Mauritius' intervention to sell dollars.
- 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