Fearlessness is not the absence of fear. It is the mastery of fear. It's about getting up one more time than we fall down.
The Single currency ventured further beyond $1.1200 this morning as waning pandemic fears and hopes policymakers will support the eurozone’s weakest economies encouraged the global quest for higher returns.
The Pound spiked to its highest in a month above $1.2550 as signs that Britain might be willing to compromise on sticking points, including fisheries and trade rules, in Brexit negotiations with the European Union.
The Yen slumped to 108.55 undermined by heavy and broad selling of the haven yen, amid market is reportedly waiting for G7 finance ministers to hold a conference call on Wednesday.
The Aussie ran roughshod to $0.6936 as risk-on sentiment is being driven by investors’ reduced U.S-Sino concerns, and echoed by Australia's central bank as it kept interest rates steady at 0.25%.
The Rand extended gains to 17.10 per dollar buoyed by hopes for global economic recovery.
In Mauritius, the USD/MUR slipped to 40.15(selling) pressured by BOM’s intervention on Tuesday and as U.S dollar haven exodus remained unabated on the International market.
11:55 - EUR - German Unemployment Change (May)
12:30 - GBP - Composite PMI (May)
12:30 - GBP - Services PMI (May)
16:15 - USD - ADP Nonfarm Employment Change (May)
18:00 - USD - ISM Non-Manufacturing PMI (May)
18:00 - CAD - BoC Interest Rate Decision
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.
• 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