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The Single currency perched at a 2-month high at $1.1100 as the EU’s announcement of a 750B EUR coronavirus recovery fund fueled optimism about the euro-zone economy.
The Pound is on course for its second weekly gains at $1.2340 supported by broad selling in the U.S dollar this week.
The Japanese Yen spiked to 107.13 per dollar after Japan CPI data smashed estimates on Friday, while risk-aversion provided additional support to the Yen.
The Aussie held weekly gains at $0.6643 although Sino-US friction raised a potential pitfall later in the session. U.S President Donald Trump will hold a news conference on China this Friday at 18:00 GMT
The Rand fell to 17.47 against the greenback as Sino-U.S friction dented risk appetite.
The USD/MUR kept the wait and see mode at 40.45(selling) on Friday despite a weakening U.S dollar across the board
13:00 - EUR - CPI (ÝoY)
16:30 - GDP (MoM)(Mar)
19:00 - USD - Fed Chair Powell 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