The difficulty lies not so much in developing new ideas, but in escaping the old ones.
USD
EUR/USD
The Single currency defied gravity to $1.1626 in the afterglow of Europe's leaders agreeing on a coronavirus rescue package. July's PMI from Germany, Eurozone to provide cues on Friday.
GBP/USD
Sterling plunged from $1.2773 to $1.2727 after the European Union's chief Brexit negotiator said that the UK had shown no willingness to break the deadlock on talks over a new trade agreement.
USD/JPY
The safe-haven yen rocketed to 106.35 per dollar as deteriorating Sino-U.S. relations, stemming from the closure of Houston and Chengdu embassies, heightened investor anxiety.
AUD/USD
The Aussie ran out of puff to $0.7085 following Australia's government confirmed just how much carnage the coronavirus had caused to its budget finances.
USD/ZAR
South Africa's rand trimmed its gains to 16.70 against the dollar after the central bank cut lending rates by 25 basis points to 3.50% for a fifth time in a row to support an economy strangled by the COVID-19 pandemic.
USD/MUR
The dollar-rupee surged by 10 cents to 40.50(selling), buoyed by local economic factors.
10:00 - GBP - Retail Sales (MoM)(Jun)
11:30 - EUR - German Manufacturing PMI (Jul)
12:30 - GBP - Manufacturing PMI
12:30 - GBP - Composite PMI
12:30 - GBP - Services PMI
18:00 - USD - New Home Sales (Jun)
After rallying from bottoming all time low at 101.20 to 111.71 in covid-fueled March period, dwarfing an expanding leading diagonal ((1)) in 5 waves, USD/JPY has ever since unfolded in a corrective double three combination pattern (W)-(X)-(Y) of wave ((2)).
From an Elliott Wave trading standpoint, the pair may experience further decline to the choppy downside to complete countertrend wave (Y) because- An impulse usually retraces to at least wave (4) of previous smaller trend, that is 105.19.
- Wave (4) of wave ((1)) coincides with 61.8% Fibonnacii retracement of wave ((1)), i.e 105.19.
- 78.6% projection wave (W) through (X) targets level 105.30.
- In EW lexicon, a pullback to the previous wave (2) usually happen to a leading diagonal ((1)).
- Post-triangle thrust measurement of wave B of (Y) leads exactly to 105.20.
- USD/JPY is still trading within the bearish parellel trendlines.
Thus, hibernation of price action could be seen in the locality of 105.30/19.On the flipside, a violent recoil to revive bullish momentum at 109.84 of June 4th would nullify this set-up, warning that the potency of positioning-derived bearish signal may be ebbing.
On the hourly Chart, The USD/CAD has found strong support again near $1.3350 region yesterday. The pair fell to as low as $1.3345 before bouncing off relentlessly to as high as $1.3444 this morning.
We feel that the USD/CAD could be in an early stage of a bullish run towards $1.4017 in the coming months.
On the downside, $1.3315 remains a strong baseline , while a break below that level would open the door for further weakness on the USD/CAD near $1.3200.
