Dollar Selloff Continues, Euro Ready for Upside Breakout
| Action Insight Daily Report 1-10-23 |
Dollar Staying Weak, But Awaits Committed Selling |
Markets turned steady in Asian session as risk-on moves take a breather for now. Dollar remains the worst performer but there is no committed follow through selling so far, after breaking near term support against Euro and Swiss Franc. Commodity currencies also lose some momentum and are overtaken by European majors in terms of strength. Euro is having mild upper hand against other European peers. Technically, EUR/AUD is losing some downside momentum as seen in 4 hour MACD. The corrective fall from 1.5976 might complete ahead of 38.2% retracement of 1.4281 to 1.5976 at 1.5329. Break of 1.5614 resistance will bring stronger rally back to retest 1.5976 high. If happens, given AUD/USD's firmness, that might be accompanied some upside acceleration in EUR/USD finally. Let's see. In Asia, at the time of writing, Nikkei is up 0.72%. Hong Kong HSI is down -0.33%. China Shanghai SSE is up 0.38%. Singapore Strait Times is down -1.00%. Japan 10-year JGB yield is down -0.0024 at 0.503. Overnight, DOW dropped -0.34%. S&P 500 dropped -0.08%. NASDAQ rose 0.63%. 10-year yield dropped -0.052 to 3.517. |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0662; (P) 1.0711; (R1) 1.0785; More... Break of 1.0733 resistance indicates resumption of whole rally from 0.9534. Intraday bias in EUR/USD is turned to the upside. Next target is 61.8% projection of 0.9630 to 1.0733 from 1.0482 at 1.1164. On the downside, below 1.0659 minor support will turn intraday bias neutral again fist. But near term outlook will stay bullish as long as 1.0482 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Core Y/Y Dec | 4.00% | 3.80% | 3.60% | | 23:30 | JPY | Household Spending Y/Y Nov | -1.20% | 0.60% | 1.20% | | 00:01 | GBP | BRC Like-For-Like Retail Sales Y/Y Dec | 6.50% | 4.10% | | 07:45 | EUR | France Industrial Output M/M Nov | 0.90% | -2.60% | | 11:00 | USD | NFIB Business Optimism Index Dec | 91.6 | 91.9 | | 15:00 | USD | Wholesale Inventories Nov F | 1.00% | 1.00% |
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