Market Consolidates in Tight Range But Euro Looks Vulnerable
Action Insight Mid-Day Report 11-22-21

Euro Soft But No Fresh Selloff Yet

Euro stays generally soft today even though there is no follow through selling yet. It's reported that Germany's acting Chancellor Angela Merkel urged in a CDU meeting tougher restrictions to combat the fourth wave of coronavirus infection. But the news was shrugged off as the markets have probably priced in a return to lockdown in Germany already. As for today, Yen and Sterling are the softer ones with Euro. Commodity currencies are firm on positive market sentiment in the US, with NASDAQ likely to extend record run at open.

Technically, we'd maintain that Euro bears are probably still waiting to press the button on selling EUR/USD firmly away from 1.125/30 support zone. Thus, the movements in Euro against other relatively limited. One exception is EUR/AUD, which is apparently heading back to 1.5446 minor support. Break there will bring retest of 1.5354 low and could help drag Euro down elsewhere.

In Europe, at the time of writing, FTSE is down -0.18%. DAX is down -0.35%. CAC is down -0.30%. Germany 10-year yield is up 0.0242 to -0.316. Earlier in Asia, Nikkei rose 0.09%. Hong Kong HSI dropped -0.39%. China Shanghai SSE rose 0.61%. Singapore Strait Times rose 0.15%. Japan 10-year JGB yield dropped -0.0050 to 0.074.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1231; (P) 1.1302; (R1) 1.1354; More...

Intraday bias in EUR/USD remains neutral first and outlook is unchanged. On the downside, break of 1.1249 and sustained trading below 1.1289 long term fibonacci level will carry larger bearish implications. Deeper fall would then be seen to 161.8% projection of 1.1908 to 1.1523 from 1.1691 at 1.1068 next. Nevertheless, break of 1.1384 minor resistance will now indicate short term bottoming, and turn bias back to the upside for rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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