Life isn't a matter of milestones, but of moments
The Single currency recovered to $1.1220 after hitting a previous day low of $1.1190 ahead of ECB president Lagarde's speech.
The Sterling slightly gained to $1.2432 as traders bought back into the currency following its recent run lower, although worries about a second wave of COVID-19 infections and negotiations over a Brexit deal kept the rebound in check.
The Aussie dollar stayed put at $0.6890 despite Australia's Prime Minister Scott Morrison was out on the wires earlier today, trying to allay Covid-19 fears triggered by the recent rise in the number of cases in the state of Victoria.
The Japanese yen little changed at 107.10/dlr after the Bank of Japan Governor Haruhiko Kuroda said that they can be cautiously optimistic about the economic recovery in the near future.
The South African rand recovered to 17.13/dlr following a budget from S.A's Finance Minister Tito Mboweni speech that forecast ballooning debt and a higher government deficit.
The U.S unfazed at 40.50(selling) against the Rupee on the domestic market.
11:00 - EUR - ECB President Lagarde Speaks
17:00 - MUR - Interest Rate Decision
On the hourly chart, in an Elliott wave perspective, the upward correction that started on 18th of May 2020 to 11th June high of $1.2815 appeared to be a wave B within the April-June 2020 irregular flat decline (a)-(b)-(c) . A flat is a sideways, three-wave corrective pattern labelled A-B-C. Wave A (1.2078-18th May) and Wave B are always corrective waves (3-wave decline), while wave C is always a motive wave (5 wave structure). Actually, Wave C seems to be underway with one or two legs to the downside, completing wave 2, while a bearish contracting Diagonal pattern looming ahead.
Technically, we expect the bearish scenario on the GBP/USD to find its first strong support near $1.2170 printed on 7th April 2020 , as the Wave principle holds that the limit of any market correction tend to register their maximum retracement within the span of travel of previous fourth wave of lesser degree. However, a break below that level could open the door for further decline near $1.1888 (a 61.8% Fibonacci percentage of previous March-April 2020 impulsive rally).
On the other hand, a bullish move on the GBP/USD is expected to meet interim contention around $1.2694 and a breach of this area on a sustainable basis could open the door to a probable visit to the high of $1.2815 printed on 10th of June.
From an Elliott Wave trading standpoint, USD/CHF indicates a violent recoil higher in compelling impulse Wave (3) trajectory on a test of support marked by the confluence of a former counter-trend support at Wave (2) at 0.9372 of June 11th, percolating since late March 2020. As we have continued to highlight, the trend USD/CHF remains bullish overall.
Looking at the hourly chart, the pair may propel into Wave (3) targeting 1.0084, which represents 100% Fibonacci projection of impulsive Wave (1) through corrective Wave (2). Peeking through 0.9553 of Wave (1) would further validate the upside momentum. On the flipside, a set-back of recent low at 0.9418, then 0.9372 would render the count obsolete. If the pair fails to clear the latter, it could catalyse an aggressive decline.