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USD
EUR/USD
The single currency roared higher to a two-week high at $1.0923 after Germany and France issued a call for a 500 billion-euro ($545.65 billion) recovery fund for Europe and proposed to allow the European Commission to borrow money on markets to finance the fund, while the sudden rise will face a test later with the release of ZEW survey on German investor sentiment.
GBP/USD
The Sterling soared by 0.1% to $1.22 as broad dollar weakness helped the currency shrug off talk of negative interest rates from the Bank of England and a stalemate in Brexit negotiations.
USD/JPY
The safe-haven yen eased on the greenback to be last at 107.40 per dollar as risk appetite got a boost after a potential coronavirus vaccine showed positive results in a Phase 1 trial. Moderna’s experimental vaccine showed promising early signs to create an immune-system response to fight off COVID-19.
AUD/USD
The Australian Dollar benefited from hefty gains to $0.6527 on Tuesday despite minutes of the Reserve Bank of Australia’s May policy meeting showed it saw an ”unprecedented” economic contraction this quarter.
USD/ZAR
The Rand jumped to 18.37 per dollar as progress on reopening the global economy and risk-on sentiment boosted equities and commodity prices.
USD/MUR
On the domestic market, the USD/MUR unfazed at 40.30(selling).
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13:00 - EUR - German ZEW Economic Sentiment
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- 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
