Yen Recovering, Euro Firm, Dollar and Sterling Struggle

It feels like the markets are turning a corner. Euro staged a strong rebound overnight on hope of cease-fire in Ukraine. Focus has then turned to Yen today, which is staging a notable recovery in Asia. On the other hand, both Dollar and Sterling are under some selling pressure. Commodity currencies are mixed for now. In other markets, US 10-year yield took a dive and the mostly watched 2-10yr yield curve is about to invert. US stocks shrugged the recession warning and closed higher. Gold is recovering after yesterday's fall but oil remains heavy.

Technically, firstly, Euro will still have to do more to confirm that it's in a bullish reversal. Levels to watch include 1.1120 resistance in EUR/USD, 0.8476 resistance in EUR/GBP and 1.0400 resistance in EUR/CHF. These levels are not decisively taken out yet. Secondly, focus will also be on 121.17 minor support in USD/JPY. Break there will confirm short term topping, to be followed by deeper near term correction.

In Asia, at the time of writing, Nikkei is down -1.64%. Hong Kong HSI is up 1.14%. China Shanghai SSE is up 1.42%. Singapore Strait Times is up 0.04%. Japan 10-year JGB yield is down -0.0283 at 0.224, and it seems like BoJ's intervention is working. Overnight, DOW rose 0.97%. S&P 500 rose 1.23%. NASDAQ rose 1.84%. 10-year yield dropped -0.077 to 2.400.

• S&P 500 broke key resistance, heading back to record high
• New Zealand ANZ business confidence rose to -41.9, inflation expectations rose...
• BoJ increases size of JGB purchases to defend yield cap
• US consumer confidence rose to 107.2, supported by strong employment growth

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

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8409; (P) 0.8445; (R1) 0.8505; More...

Intraday bias in EUR/GBP remains on the upside with focus on 0.8476 structural resistance. Decisive break there should confirm medium term bottoming at 0.8201, with a head and shoulder bottom pattern too (ls: 0.8282, h: 0.8201, rs: 0.8294). In this case, near term outlook will turn bullish for 0.8697 fibonacci level next. On the downside, however, below 0.8398 minor support will mix up the outlook and turn intraday bias neutral first.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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