Yen Mildly Firmer in Subdued Trading, Kiwi Soft Despite Strong Retail Sales
Action Insight Daily Report 5-24-21

Yen Mildly Firmer in Subdued Trading, Kiwi Soft Despite Strong Retail Sales

The forex markets are rather quiet in Asian session today. With some European markets and Canada on holiday, trading will likely remain subdued for the day ahead. Yen is trading mildly firmer, as near term consolidations are extending. Meanwhile, Australian Dollar and Canadian Dollar are the slightly softer ones.

Technically, Canadian Dollar might be a focus in the next few days. Last week's retreat in the Loonie lost momentum rather quickly, while oil price appears to have stabilized above 62 handle. EUR/CAD could try for another take on 1.4580 temporary low and break there will resume larger down trend. But that might also depend on whether USD/CAD could draw enough support from 1.2061 key long term level to stage a bullish reversal.

In Asia, at the time of writing, Nikkei is up 0.26%. Hong Kong HSI is down -0.41%. China Shanghai SSE is up 0.16%. Singapore Strait Times is up 0.36%. Japan 10-year JGB yield is up 0.0010 at 0.084.

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USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2031; (P) 1.2063; (R1) 1.2098; More...

Intraday bias in USD/CAD remains neutral at this point. We'd continue to stay cautious on strong support from 1.2048/61 cluster level to bring reversal. On the upside, break of 1.2201 resistance will indicate short term bottoming and turn bias to the upside for stronger rebound. However, sustained break of 1.2048/61 will carry larger bearish implications. Next near term target will be 161.8% projection of 1.2880 to 1.2363 from 1.2653 at 1.1816.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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22:45 NZD Retail Sales Q/Q Q1 2.50% -1.80% -2.70% -2.60%
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