Dollar Rally Taking Shape One Step at a Time
Action Insight Daily Report 7-1-21

Dollar Rally Taking Shape One Step at a Time

Dollar's rally continues to make progress, one step at a time. Solid job report overnight helped lift the greenback through near term resistance against Euro and Yen. Nevertheless, reaction in stocks were subdued. Focus will now turn to ISM manufacturing today for more inspirations. Meanwhile, commodity currencies and Swiss Franc are currently the weakest for the weak. In particular, Aussie is shrugging off some solid manufacturing and trade data.

Technically, EUR/USD's breach of 1.1846 suggests fall resumption towards 1.1703 support. USD/JPY also breaks 111.10 resistance to resume recent rally. Focus now turns to 0.7476 support in AUD/USD and 1.3785 support in GBP/USD. Break of these level should seal the case for more rally in Dollar. NZD/USD could also take on 0.6921 support soon. Break there will resume whole corrective pattern from 0.7463 to 100% projection of 0.7463 to 0.6942 from 0.7315 at 0.6794.

In Asia, at the time of writing, Nikkei is down -0.44%. Hong Kong and China are on holiday. Singapore Strait Times is up 0.02%. Japan 10-year JGB yield is down -0.0091 at 0.050. Overnight, DOW rose 0.61%. S&P 500 rose 0.13%. NASDAQ dropped -0.17%. 10-year yield dropped -0.037 to 1.443.

Full Report Here

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EUR/USD Daily Outlook

Daily Pivots: (S1) 1.1834; (P) 1.1871; (R1) 1.1898; More...

EUR/USD's breach of 1.1846 support suggests that fall from 1.2265 is resuming. Intraday bias is back on the downside, such fall is seen as the third leg of the consolidation pattern from 1.2348. Deeper decline would be seen back to 1.1703 support. On the upside, break of 1.1974 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Fundamental Analysis | Technical Analysis
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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
22:30 AUD AiG Performance of Mfg Index Jun 63.2 61.8
22:45 NZD Building Permits M/M May -2.80% 4.80% 5.10%
23:50 JPY Tankan Large Manufacturing Index Q2 14 15 5
23:50 JPY Tankan Large Manufacturing Outlook Q2 13 18 4
23:50 JPY Tankan Non - Manufacturing Index Q2 1 3 -1
23:50 JPY Tankan Non - Manufacturing Outlook Q2 3 8 -1
23:50 JPY Tankan Large All Industry Capex Q2 9.60% 7.20% 3.00%
00:30 JPY Manufacturing PMI Jun F 52.4 51.5 51.5
01:30 AUD Trade Balance (AUD) May 9.68B 10.50B 8.03B 8.16B
01:45 CNY Caixin Manufacturing PMI Jun 51.3 51.8 52
06:00 EUR Germany Retail Sales M/M May 5.00% -5.50%
06:30 CHF Real Retail Sales Y/Y May 35.70%
06:30 CHF CPI M/M Jun 0.20% 0.30%
06:30 CHF CPI Y/Y Jun 0.70% 0.60%
07:30 CHF SVME PMI Jun 70.2 69.9
07:45 EUR Italy Manufacturing PMI Jun 62.2 62.3
07:50 EUR France Manufacturing PMI Jun F 58.6 58.6
07:55 EUR Germany Manufacturing PMI Jun F 64.9 64.9
08:00 EUR Italy Unemployment May 10.70% 10.70%
08:00 EUR Eurozone Manufacturing PMI Jun F 63.1 63.1
08:30 GBP Manufacturing PMI Jun 64.2 64.2
09:00 EUR Eurozone Unemployment Rate May 8.00% 8.00%
11:30 USD Challenger Job Cuts Y/Y Jun -93.80%
12:30 USD Initial Jobless Claims (Jun 25) 382K 411K
13:45 USD Manufacturing PMI Jun F 62.6 62.6
14:00 USD ISM Manufacturing PMI Jun 61.5 61.2
14:00 USD ISM Manufacturing Prices Paid Jun 89.8 88
14:00 USD ISM Manufacturing Employment Index Jun 50.9
14:00 USD Construction Spending M/M May 0.40% 0.20%
14:30 USD Natural Gas Storage 55B