Euro Extending Consolidations Despite Improving Investor Confidence, Dollar also Soft
Action Insight Mid-Day Report 2-7-22

Euro Extending Consolidations Despite Improving Investor Confidence, Dollar also Soft

Australian Dollar is leading commodity currencies higher in relatively quiet trading today. Swiss Franc is also firm, but mainly because Euro is consolidation gains. Sterling is currently the weakest one, followed by Euro and then Dollar, while Yen is mixed. In other markets, major European indexes are trading water while US futures point to slightly higher open. Gold is trading above 1800 handle but lacks follow through buying so far. WTI crude oil is holding on well to 92 handle for further rally.

Technically, in addition to 1.1482 resistance in EUR/CAD. We'll also pay close attention to 1.4644 resistance in EUR/CAD. Sustained break there will be a sign of medium term bullish reversal and turn focus to 38.2% retracement of 1.5991 to 1.4098 at 1.4821. Euro will have to break through these two levels with some conviction if the trend reversal is for real.

In Europe, at the time of writing, FTSE is up 0.63%. DAX is up 0.47%. CAC is up 0.39%. Germany 10-year yield is up 0.011 at 0.221. Earlier in Asia, Nikkei dropped -0.70%. Hong Kong HSI rose 0.02%. China Shanghai SSE rose 2.03%. Singapore Strait Times rose 1.05%. Japan 10-year JGB yield dropped -0.0007 to 0.200.

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

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 114.84; (P) 115.13; (R1) 115.49; More...

USD/JPY is still bounded in sideway trading and intraday bias remains neutral. Consolidation from 116.34 is still extending. On the upside, break of 115.68 will resume the rebound from 113.46 to retest 116.34 high first. On the downside, break of 114.14 should extend the consolidation with another falling leg through 113.46 support.

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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
21:30 AUD AiG Performance of Services Index Jan 56.2 49.6
01:45 CNY Caixin Services PMI Jan 51.4 50.5 53.1
05:00 JPY Leading Economic Index Dec P 104.3 103.1 103.2
06:45 CHF Unemployment Rate Jan 2.30% 2.40% 2.40%
07:00 EUR Germany Industrial Production M/M Dec -0.30% 0.80% -0.20%
08:00 CHF Foreign Currency Reserves (CHF) Jan 947B 945B
09:30 EUR Eurozone Sentix Investor Confidence Feb 16.6 15.2 14.9