Action Insight Mid-Day Report 8-23-22

Euro Selloff Continues after Poor PMIs

Euro's selloff continues today after poor PMI data and stays as the worst performer for the week. Swiss Franc is also weak for now, together with Sterling. Dollar remains the strongest one, but struggle to extend gains against commodity currencies. In other markets, major European indexes are soft but downside is limited. US futures also point to flat open. Major treasury yields are extending near term rally. Gold is engaging in weak recovery.

Technically, selling focus appears to be turning from Euro to Swiss Franc. A focus in on EUR/CHF. Further decline is expected as long as 0.9698 resistance holds. However, considering bullish convergence condition in 4 hour MACD, break of 0.9698 resistance will indicate short term bottoming and bring stronger rebound. If happens, that could help Euro stabilize slightly elsewhere.

In Europe, at the time of writing, FTSE is down -0.75%. DAX is down -0.08%. CAC is down -0.32%. Germany 10-year yield is up 0.0349 at 1.341. Earlier in Asia, Nikkei dropped -1.19%. Hong Kong HSI dropped -0.78%. China Shanghai SSE dropped -0.05%. Singapore Strait Times dropped -0.50%. Japan 10-year JGB yield dropped -0.0088 to 0.222.

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9897; (P) 0.9972; (R1) 1.0018; More...

Intraday bias in EUR/USD remains on the downside for the moment. Next target is 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, above 1.0045 minor resistance will turn intraday bias neutral and bring consolidations. But recovery should be limited well below 1.0368 resistance to bring fall resumption.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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