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USD
EUR/USD
The shared currency recovered from a low of to $1.0815 to $1.0870 on signs of success in a COVID-19 treatment drug trial by U.S manufacturer Gilead, together with early plans to re-open the U.S. economy in a three-stage process dependent on robust virus testing and subject to state governors' discretion.
GBP/USD
The Cable bounced back from $1.2411 to $1.2491 despite gloomy outlook by the UK government on premature lift of the country-wide lockdown, while International Monetary Fund recommended that Britain extend its post-Brexit transition period to ease uncertainty at a time when the world economy is being hammered by the coronavirus pandemic.
USD/JPY
The safe-haven yen unfazed at 107.70 per dollar as investors weigh COVID-19 mounting damage and mixed sentiment due to uncertainty over coronavirus and the implications for getting nations back to work in order to kick start the global economy
AUD/USD
The Aussie surged to $0.6366 in early Asian hours, unabated by China's first-quarter GDP plunged to -6.8% year-on-year, the first reversal since 1992 subdued by the outbreak, thus paralyzing production and spending.
USD/ZAR
The South African rand plummeted to 18.74 against the greenback as Moody’s revised the country’s gross domestic product (GDP) growth outlook downwards for 2020 further down to 2.5% contraction with South Africa sliding deeper into recession.
USD/MUR
The pair steadied at 40.25 (selling) on the domestic market after Bank of Mauritius slashed the Key Repo Rate by 100 basis points, from 2.85% to 1.85% yesterday.
- 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
