Dollar Extending Recovery, Euro and Sterling Soften
| Action Insight Daily Report 11-21-22 |
Dollar Extending Recovery, Euro and Sterling Soften |
Dollar opened the week broadly higher, following last week's late recovery. Swiss Franc also picks up some buying, especially against Euro and Sterling. Commodity currencies are mixed for now, with Canadian Dollar having an upper hand. Yen is also mixed as corrective trading continues. The week is relatively light with holidays. But there are still some focuses like RBNZ rate decision, PMIs, and Fed and ECB minutes. Technically, while GBP/CHF recovered last week after drawing support from 38.2% retracement of 1.0183 to 1.1574 at 1.1043. But recovering stalled ahead of 1.1410 resistance, keeping risks on the downside. Break of 1.1047 will prompt deeper decline to 61.8% retracement at 1.0714, even as a corrective move. Nevertheless, break of 1.1410 will revive near term bullishness for retest of 1.1574 resistance first. Development in GBP/CHF could be a hint on whether EUR/GBP is heading through 0.8827 resistance, or 0.8570 support. In Asia, Nikkei rose 0.16%. Hong Kong HSI is down -1.68%. China Shanghai SSE is down -0.52%. Singapore Strait Times is down -0.81%. 10-year JGB yield dropped -0.0023 to 0.251. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6650; (P) 0.6690; (R1) 0.6719; More... Intraday bias in AUD/USD stays neutral at this point. Further rally is expected as long as 0.6521 resistance turned support holds. On the upside, break of 0.6796 will resume the rise from 0.6169 to 0.6871 fibonacci level. However, sustained break of 0.6521 will argue that whole rebound from 0.6169 is over, and bring deeper fall to retest this low. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 07:00 | EUR | Germany PPI M/M Oct | 0.90% | 2.30% | | 07:00 | EUR | Germany PPI Y/Y Oct | 41.50% | 45.80% |
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