Dollar Extending Pull Back; ECB, BoJ and Lots of Data This Week
Action Insight Daily Report 7-18-22

Dollar Extending Pull Back; ECB, BoJ and Lots of Data This Week

Risk sentiment is positive as another week starts, with major Asian indexes trading higher while Japan is on holiday. Dollar is extending its near term pull back while Yen and Swiss Franc are also soft. On the other hand, New Zealand Dollar is lifted slightly by stronger than expected consumer inflation data, while Aussie and Sterling are also firmer. Euro is mixed for now, and looks forward to ECB's rate hike later in the week.

Technically, USD/CHF's break of 0.9754 minor support is the first sign of a more sustainable pull back in Dollar. Attention will now be on 1.0121 minor resistance in EUR/USD. Firm break there will argue that parity is safe for EUR/USD for now, and stronger rebound would be seen back to 1.0348 support turned resistance. That would accompanied by more broad-based position squaring in the greenback.

In Asia, at the time of writing, Hong Kong HSI is up 2.57%. China Shanghai SSE is up 1.34%. Singapore Strait Times is up 0.62%. Japan is on holiday.

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

USD/CHF Daily Outlook

Daily Pivots: (S1) 0.9731; (P) 0.9789; (R1) 0.9818; More...

USD/CHF's break of 0.9754 minor support argues that rebound from 0.9493 is complete at 0.9884. Consolidation from 1.0063 is extending with another falling leg. Intraday bias is back on the downside for 55 day EMA (now at 0.9680). Firm break there will target 0.9493 support again. on the upside, above 0.9884 will resume the rebound to retest 1.0063 high.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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