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The Single currency kept the bullish tone at $1.0950 ahead of ECB’s President Christine Lagarde's speech at 11:30, while the European Union is likely to unveil its own recovery fund linked to the EU's next long-term budget today to help the bloc recover from the coronavirus-fuelled economic slump.
The Pound soared to a high of $1.2360 on Tuesday, before retreating to $1.2315, following news that the European Union’s Brexit negotiator Michel Barnier was said to drop demand of unchanged access to the fishing grounds around the UK’s coast.
The Japanese yen surged to 107.50 against the greenback on news that Japan will compile a new JPY117.1 trillion stimulus package that includes significant direct spending.
The Australian Dollar eased slightly to $0.6640 after strong gains the previous day, on report Trump administration was weighing a range of sanctions on Chinese officials.
The Rand hit an eight week high at 17.34 per dollar on rising hope of economic recovery in a number of countries.
On the domestic market, the USD/MUR jostled near 40.45(selling).
11:30 - EUR - ECB President Lagarde 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