What we know is a drop, what we don't know is an ocean.
USD
EUR/USD
The single plunged to a low of $1.0780 yesterday after weak EU retail sales suffered their largest decline on record in March while the German industry collapsed in production to -9.2%.
GBP/USD
The cable spiked from a low of $1.2308 to $1.2365 following the decision of the Bank of England to keep the interest decision put at 0.10%.
USD/JPY
The safe-haven yen soared to seven-week high at 105.98 per dollar on Thursday as investors limited their exposure to riskier assets amid dire global economic data, rising trade tensions and concerns over the eurozone.
AUD/USD
The Australian dollar edged up to $0.6442 on Thursday, helped by an unexpectedly large trade surplus for March on the back of mineral exports, but worries over weak consumption in top trading partner China capped gains.
USD/ZAR
The South African rand inched lower to 18.65 against the greenback after South African private sector activity fell to a record low in April, a business survey showed on Wednesday, as temporary company closures led to a collapse in demand.
USD/MUR
On the domestic market, the USD/MUR slashed by 25 cents to 40.45(selling) following BOM's intervention yesterday.
10:00 - GBP - BoE Interest Rate Decision (May)
10:00 - EUR - German Industrial Production (MoM)(Mar)
15:00 - GBP - BoE Inflation Report
15:00 - GBP - BoE MPC Meeting Minutes
16:30 - USD - Initial Jobless Claims
- 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
