Euro Drops Broadly Follower Weaker Germany Sentiment and Outlook
Action Insight Mid-Day Report 10-25-21

Euro Drops Broadly Follower Weaker Germany Sentiment and Outlook

Euro drops broadly today after slightly weaker than expected German sentiment. Bundesbank also warned of significantly lower growth in Germany in Q4. Swiss France is following as second weakest. Yen is also soft following rally in major global treasury yields. On the other hand, Aussie is currently the strongest for today, followed by Dollar.

Technically, attention is now on whether Euro's selloff would result in broad based decline resumption. In particular, levels to watch include temporary lows in EUR/GBP at 0.8420, in EUR/AUD at 1.5456, and in EUR/CAD in 1.4317. Meanwhile, break of 1.1571 minor support in EUR/USD and 0.9251 minor resistance in USD/CHF could be signs of come back in Dollar. But that's still a bit far for now.

In Europe, at the time of writing, FTSE is up 0.32%. DAC is up 0.32%. CAC is down -0.16%. Germany 10-year yield is up 0.0124 at -0.088. Earlier in Asia, Nikkei dropped -0.71%. Hong Kong HSI rose 0.02%. China Shanghai SSE rose 0.76%. Singapore Strait Times dropped -0.10%. Japan 10-year JGB yield rose 0.0030 to 0.101.

Full Report Here

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1625; (P) 1.1640; (R1) 1.1660; More...

EUR/USD drops sharply today but stays above 1.1571 minor support. Intraday bias remains neutral at this point. On the upside, break of 1.1668 will target 55 day EMA (now at 1.1705). Sustained break there will be a sign that larger correction from 1.2348 has completed. Stronger rally would be seen to 1.1908 resistance for confirmation. On the downside, though, break of 1.1571 minor support will turn bias back to the downside for 1.1523 support instead. Break there will resume larger fall from 1.2348.

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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
08:00 EUR Germany IFO Business Climate Oct 97.7 97.8 98.8
08:00 EUR Germany IFO Current Assessment Oct 100.1 99.3 100.4
08:00 EUR Germany IFO Expectations Oct 95.4 96.1 97.3