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USD
EUR/USD
The Shared currency towered to $1.1816 on crumbling U.S. yields, as the latest U.S coronavirus relief package got bogged down in Congress.
GBP/USD
The Sterling initially eased gains to $1.2977 on fears of a second wave virus infections in the U.K., but it later clawed back to $1.3090 on broad U.S dollar weakness.
USD/JPY
The Japanese Yen trimmed losses to 105.68 against the U.S dollar on positive Japan's Services PMI in the Asian session.
AUD/USD
The Aussie dollar ascended to $0.7186 despite downbeat China’s Caixin Services PMI data earlier today.
USD/ZAR
The South Africa's rand extended losses to 17.30/dlr amid fears over the pace of global economic recovery, as coronavirus cases surge.
USD/MUR
The Mauritian rupee climbed by 5 cents to 40.15(Selling) on the domestic market.
12:30 - GBP - Services PMI (Jul)
12:30 - GBP - Composite PMI (Jul)
16:15 - USD - ADP Nonfarm Employment Change (Jul)
18:00 - USD - ISM Non Manufacturing PMI (Jul)
18:30 - USD - Crude oil inventories
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.
