EUR/USD Downside Breakout; Focus on RBA, BoC and ECB This Week
| Action Insight Daily Report 9-5-22 |
EUR/USD Downside Breakout; Focus on RBA, BoC and ECB This Week |
The downside breakout in EUR/USD is finally here as markets focus turns to meetings of RBA, BoC and ECB. Dollar is rising broadly, and risk-off sentiment takes Yen and Swiss Franc higher too. Euro is starting to reverse some of last week's gain while Sterling is staying weak. Commodity currencies are currently mixed for now. Technically, as Euro turns weak broadly, some attention will be on 0.9696 minor support in EUR/CHF. Break there will argue that corrective rebound from 0.9550 has completed at 0.9864. Larger down trend might be ready to resume through 0.9550 low in this case. If that happens, Euro could be dragged down further in other crosses. In Asia, at the time of writing, Nikkei is up 0.03%. Hong Kong HSI is down -1.28%. China Shanghai SSE is up 0.10%. Singapore Strait Times is up 0.25%. Japan 10-year JGB yield is down -0.007 at 0.236. |
EUR/USD Daily Outlook Daily Pivots: (S1) 0.9925; (P) 0.9979; (R1) 1.0016; More... EUR/USD's down trend resumed by breaking 0.9899 low. Intraday bias is back on the downside for 61.8% projection of 1.0773 to 0.9951 from 1.0368 at 0.9860. Firm break there should prompt downside acceleration to 100% projection at 0.9546. On the upside, break of 1.0078 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | AUD | AiG Performance of Construction Index Aug | 47.9 | 45.3 | | 01:00 | AUD | TD Securities Inflation M/M Aug | -0.50% | 1.20% | | 01:30 | AUD | Company Gross Operating Profits Q/Q Q2 | 7.60% | 4.00% | 10.20% | 9.80% | | 01:45 | CNY | Caixin Services PMI Aug | 55.0 | 54.2 | 55.5 | | 07:00 | CHF | GDP Q/Q Q2 | 0.40% | 0.50% | | 07:45 | EUR | Italy Services PMI Aug | 48.3 | 48.4 | | 07:50 | EUR | France Services PMI Aug F | 51 | 51 | | 07:55 | EUR | Germany Services PMI Aug F | 48.2 | 48.2 | | 08:00 | EUR | Eurozone Services PMI Aug F | 50.2 | 50.2 | | 08:30 | EUR | Eurozone Sentix Investor Confidence Sep | -27.5 | -25.2 | | 08:30 | GBP | Services PMI Aug F | 52.5 | 52.5 | | 09:00 | EUR | Eurozone Retail Sales M/M Jul | 0.60% | -1.20% |
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