Euro Recovers as German Economic Sentiment Rebounds, Dollar also Higher
Action Insight Mid-Day Report 9-17-19

Euro Recovers as German Economic Sentiment Rebounds, Dollar also Higher

Euro recovers mildly today as partly supported by strong rebound in German economic sentiment. Though, upside is capped for now as outlook for the country remains negative. Follows as the second strongest, then Yen. Fed is still widely expected to cut interest rate again tomorrow. And the question is whether Chair Jerome Powell would signal that's the end of the mid-cycle adjustment. On the other hand, Australian Dollar remains the weakest one on dovish RBA minutes. New Zealand Dollar is the second weakest, then Swiss Franc.

Technically, EUR/USD continues to engage in sideway consolidation. A break through 1.0926 is still expected but it might come at a later stage. USD/CHF's break of 0.9946 suggests resumption recent choppy rise from 0.9659. 0.9975 will be an important structural resistance to take out. For now, AUD/USD is still holding above 0.6807 minor support, but break there will indicate completion corrective rebound from 0.6677.

In Europe, currently, FTSE is flat. DAX is down -0.56%. CAC is down -0.23%. German 10-year yield is down -0.006 at -0.485. Earlier in Asia, Nikkei rose 0.06%. Hong Kong HSI dropped -1.23%. China Shanghai SSE dropped -1.75%. Singapore Strait Times dropped -0.65%. Japan 10-year JGB yield rose 0.0043 to -0.151.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0970; (P) 1.1028; (R1) 1.1062; More...

EUR/USD recovers mildly but stays in consolidation from 1.0926. Intraday bias remains neutral and more sideway trading might be seen. But overall, outlook remains bearish as long as 1.1164 resistance holds. Firm of 1.0926 will resume lager down trend from 1.2555 for 1.0813 fibonacci level next. However, firm break of 1.1164 will be an early indication of larger reversal and target 1.1249 resistance.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:00 NZD Westpac Consumer Confidence Q3 103.1 103.5
01:30 AUD House Price Index Q/Q Q2 -0.70% -1.10% -3.00%
01:30 AUD RBA Minutes Sep
09:00 EUR German ZEW Economic Sentiment Sep -22.5 -38 -44.1
09:00 EUR German ZEW Current Situation Sep -19.9 -15 -13.5
09:00 EUR Eurozone ZEW Economic Sentiment Sep -22.4 -37.4 -43.6
12:30 CAD Manufacturing Sales M/M Jul -1.30% -1.20% -1.40%
13:15 USD Industrial Production M/M Aug 0.20% -0.20%
13:15 USD Capacity Utilization Aug 77.60% 77.50%
14:00 USD NAHB Housing Market Index Sep 66 66