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USD
EUR/USD
The Single currency capped below $1.1150 on broad dollar weakness due to the escalating US riots while markets remain jittery amid renewed US-China trade concerns.
GBP/USD
The pound surged to a four-week high at $1.2515, as a risk-on mood in global markets prompted by hopes for an economic recovery caused the safe-haven dollar to weaken, but recovered to $1.2480 weighed down by Brexit-related risks, speculation about negative rates and the fact that the United Kingdom has one of the highest COVID-19 death tolls in the world.
USD/JPY
The Japanese Yen edged lower to 107.70 region when U.S. manufacturing activity eased off an 11-year low in May at 43.1, fitting into markets' expectations that the worst of the economic downturn was behind as businesses reopen.
AUD/USD
The Aussie defied gravity to $0.6810 on reports that China had told state-owned firms to halt purchases of soybeans and pork from the United States. The Reserve Bank of Australia left its interest rate unchanged at 0.25%.
USD/ZAR
South Africa's rand firmed more than 1% at 17.38/dlr on Monday, lifted by hopes of economic recoveries at home and abroad as more countries eased coronavirus lockdowns.
USD/MUR
The Mauritian rupee idled at 40.45(selling) on the local foreign exchange market.
- 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
