Dollar Extends Strong Rally after GDP, Euro Downside Breakout
Action Insight Mid-Day Report 1-27-22

Dollar Extends Strong Rally after GDP, Euro Downside Breakout

Dollar's strong post-FOMC rally is given another boost in early US session by much better than expected Q4 GDP data. Latest jobless claims figures also suggest stabilization from the impact of Omicron. But for now, the strength is mainly centered against European majors and Yen. Canadian Dollar is indeed lifted slightly as oil prices extend recent up trend. In other markets, US future bent upward from earlier slump and now point to recovery. Gold is pressing 1800 handle while WTI oil at around 88.8.

Technically, EUR/USD's break of 1.1185 support confirms resumption of down trend from 1.2348. USD/JPY's break of 115.05 minor resistance revives near term bullishness. Focuses are now on 1.3158 low in GBP/USD, 0.6692 low in AUD/USD and 115.05 high in USD/JPY to further confirm Dollar's underlying bullishness.

In Europe, at the time of writing, FTSE is up 0.88%. DAX is up 0.04%. CAC is up 0.15%. Germany 10-year yield i up 0.025 at -0.048. Earlier in Asia, Nikkei dropped -3.11%. Hong Kong HSI dropped -1.99%. China Shanghai SSE dropped -1.78.% Singapore Strait Times dropped -0.35%. Japan 10-year JGB yield rose 0.0192 to 0.159.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1216; (P) 1.1263; (R1) 1.1291; More...

EUR/USD's break of 1.1185 support confirms resumption of whole down trend from 1.2348. Intraday bias stays on the downside for 61.8% projection of 1.1908 to 1.1185 from 1.1482 at 1.1035. Break will target 100% projection at 1.0759. On the upside, above 1.1243 minor resistance will turn intraday bias neutral first. but recovery should be limited well below 1.1482 resistance to bring down trend resumption.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:45 NZD CPI Q/Q Q4 1.40% 1.20% 2.20%
21:45 NZD CPI Y/Y Q4 5.90% 5.60% 4.90%
23:30 AUD Westpac Leading Index M/M Dec 0.00% 0.10% 0.20%
00:30 AUD Import Price Index Q/Q Q4 5.80% 1.40% 5.40%
07:00 EUR Germany Gfk Consumer Confidence Feb -6.7 -8 -6.8 -6.9
07:00 CHF Trade Balance (CHF) Dec 3.69B 5.23B 6.16B 6.10B
13:30 USD Initial Jobless Claims (Jan 21) 260K 260K 286K 290K
13:30 USD GDP Annualized Q4 P 6.90% 5.60% 2.30%
13:30 USD GDP Price Index Q4 P 6.90% 6.00% 6.00%
13:30 USD Durable Goods Orders Dec -0.90% -0.50% 2.60%
13:30 USD Durable Goods Orders ex Transportation Dec 0.40% 0.50% 0.90%
15:00 USD Pending Home Sales M/M Dec -0.20% -2.20%
15:30 USD Natural Gas Storage -205B -206B