It always seems impossible until it's done.
USD
EUR/USD
The Single currency soared to $1.1724 this morning, as intensifying Sino-U.S. tensions added to worries of a quick recovery in the world's biggest economy.
GBP/USD
The Cable surged to $1.2828 and set its biggest weekly gain since the first week of June, although investors remained cautious about data pointing to economic recovery.
USD/JPY
The Japanese yen burst to 105.62/dlr as an intensifying U.S.-China row hammered the dollar heavily.
AUD/USD
The Aussie dollar trimmed losses to $0.7138 after RBA's assistant governor Kent said that Australia's central bank is ready to buy government bonds if needed to maintain a 0.25% yield target.
USD/ZAR
The South African rand spiked to 16.585 against the greenback in line with strength in other emerging market currencies as geopolitical and economic concerns dented the greenback.
USD/MUR
The dollar-rupee mounted by 5 cents to 40.55(selling) on the domestic market.
12:00 - EUR - German Ifo Business climate index
16:30 - USD - Core Durable Goods Orders (MoM) (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.
