Dollar Extending Rally Against Euro and Swiss Franc, Sentiment Flip-Flops
| Action Insight Mid-Day Report 5-17-23 |
Dollar Extending Rally Against Euro and Swiss Franc, Sentiment Flip-Flops |
Market sentiment continue to flip-flop on flowing headlines regarding US debt ceiling negotiations. But then, it should be remembered that it's not done until it's done. So uncertainties and volatility still lie ahead. Yen is the consistent one extending its near term decline. Commodity currencies are rebounding with Sterling. But the more important development is in Dollar's rally extension against Euro and Swiss France. Technically, USD/CHF's break of 0.8993 resistance today now argues that rebound from 0.8818 might at least correcting whole fall from 1.0146. This is supported by bullish convergence condition in D MACD. Next focus is the resistance zone between 55 D EMA (now at 0.9044) and 0.9058 support turned resistance. Sustained break there will affirm this case and bring further rally to 38.2% retracement of 1.0146 to 0.8818 at 0.9325. Meanwhile, to aid the rally, EUR/CHF better takes out 0.9780 minor resistance too. In Europe, at the time of writing, FTSE is down -0.05%. DAX is up 0.49%. CAC is up 0.15%. Germany 10-year yield is down -0.0424. Earlier in Asia, Nikkei rose 0.84%. Hong Kong HSI dropped -2.09%. China Shanghai SSE dropped -0.21%. Singapore Strait Times dropped -1.25%. Japan 10-year JGB yield dropped -0.0264 to 0.369. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0844; (P) 1.0874; (R1) 1.0894; More... EUR/USD's fall from 1.1094 short term top resumed after brief consolidations. Intraday bias is back on the downside. Current fall is seen as correcting whole up trend from 0.9534. Deeper decline would be seen to 1.0515 cluster support, 38.2% retracement of 0.9534 to 1.1094 at 1.0498. On the upside, above 1.0903 minor resistance will turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | GDP Annualized Q1 P | 0.40% | 0.20% | 0.10% | | 23:50 | JPY | GDP Deflator Y/Y Q1 P | 2.00% | 2.00% | 1.20% | | 01:30 | AUD | Wage Price Index Q/Q Q1 | 0.80% | 0.90% | 0.80% | | 04:30 | JPY | Industrial Production M/M Mar F | 1.10% | 0.80% | 0.80% | | 08:00 | EUR | Italy Trade Balance (EUR) Mar | 7.54B | 2.50B | 2.11B | | 09:00 | EUR | Eurozone CPI Y/Y Apr F | 7.00% | 7.00% | 7.00% | | 09:00 | EUR | Eurozone CPI Core Y/Y Apr F | 5.60% | 5.60% | 5.60% | | 12:30 | USD | Housing Starts Apr | 1.42M | 1.40M | 1.42M | 1.43M | | 12:30 | USD | Building Permits Apr | 1.42M | 1.44M | 1.43M | 1.37M | | 14:30 | USD | Crude Oil Inventories | -1.5M | 3.0M |
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