If you can't explain it simply, you don't understand it well enough.
The Single Currency surged to $1.1320 after upbeat data in Europe boosted the euro and helped stoke hopes for a global economic recovery, underpinning investor appetite for riskier currencies.
The Pound held onto gains at $1.2515 on upbeat PMI data in both manufacturing and the services sector.
The Yen bounced to 106.57 from 107.22/dlr early on Tuesday on U.S dollar weakness after U.S data showed that U.S business activity contracted for a fifth straight month in June.
The Aussie kept the bullish stance to $0.6944 after U.S officials confirmed that the U.S-China trade deal is intact bolstered market confidence in the existing phase 1 deal.
The Rand edged up to 17.19/dlr as risk appetite improved, while on the radar is Finance Minister Tito Mboweni’s emergency budget in response to the COVID-19 crisis due today.
The USD/MUR unbothered at 40.30(selling) on the domestic market.
12:00 - EUR - German Ifo Business Climate Index (Jun)
12:00 - ZAR - Core CPI (MoM) (Apr)
18:30 - USD - Crude Oil Inventories
- 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.