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USD
EUR/USD
The single currency firmed at $1.0845 despite Fitch downgraded Italy to ‘BBB’- from ‘BBB’, mirroring significant COVID-19 effect on the economy and fiscal position.
GBP/USD
The cable receded from a high of $1.2516 to $1.2470 after the Confederation of British Industry said British retailers suffered their biggest fall in sales since the 2008 financial crisis in the first half of April.
USD/JPY
The yen surged to 106.50 per dollar on hopes of the slowing spread of the coronavirus could hasten the re-opening of global economies, amid it is a public holiday in Japan today.
AUD/USD
The Australian dollar climbed to a seven-week high at $0.6550 on Wednesday as figures out Wednesday showed inflation had picked up to a 5-1/2-year high of 2.2% in the first quarter.
USD/ZAR
The South African rocketed to 18.50 against the greenback as risk sentiment globally improved, spurred by stimulus measures, and talk by leaders around the world about easing lockdown measures, amid market is eyeing FOMC statement at 22:00 later today.
USD/MUR
The pair soared by 12 cents to 40.52(selling) today.
- 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
