Dollar Rebounds Further, But Vulnerable if Risk-on Sentiment Returns
| Action Insight Mid-Day Report 11-21-22 |
Dollar Rebounds Further, But Vulnerable if Risk-on Sentiment Returns |
Dollar's broad based rebound continues into early US session, as support by recovery in yields. While overall markets are trading in mild risk-off mode, there isn't much follow through selling in European stocks and US futures. The greenback's rally could be killed off quickly if risk sentiment turns. But for now, Dollar is the strongest one for today,, followed by Canadian and Swiss. Yen is the worst, followed by Euro and then Aussie. Technically, judging from momentum, if Dollar's rally is going to sustain, USD/JPY would likely be the first one to break through 142.45 minor resistance. Ideally, other pairs should follow, with EUR/USD breaking through 1.0092 support, GBP/USD through 1.1644 support, AUD/USD through 0.65231 support, USD/CHF through 0.9680- resistance and USD/CAD through 1.3494 resistance. Let's see if Dollar could do that. In Europe, at the time of writing, FTSE is up 0.02%. DAX is down -0.53%. CAC is down -0.25%. Germany 10-year yield is down -0.011 at 2.006. Earlier in Asia, Nikkei rose 0.16%. Hong Kong HSI dropped -1.87%. China Shanghai SSE dropped -0.39%. Singapore Strait Times dropped -0.66%. Japan 10-year JGB yield dropped -0.0078 to 0.246. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0311; (P) 1.0359; (R1) 1.0412; More... EUR/USD dips further today as retreat from 1.0481 extends but stays well above 1.0092 resistance turned support. Intraday bias remains neutral first. Further rally is expected as long as 1.0092 holds. On the upside, break of 1.0481 will resume the rise from 0.9534 and target 1.0609 fibonacci level. However, sustained break of 1.0092 will turn bias to the downside for 55 day EMA (now at 1.0034) and below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 07:00 | EUR | Germany PPI M/M Oct | -4.20% | 0.90% | 2.30% | | 07:00 | EUR | Germany PPI Y/Y Oct | 34.50% | 41.50% | 45.80% |
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