Euro Knocked Down after ECB, Dollar Striking Back
Action Insight Mid-Day Report 4-14-22

Euro Knocked Down after ECB, Dollar Striking Back

Euro is knocked down in early US session after ECB left interest rates unchanged. The central bank leaves the option to continue the asset purchases program after June, even though it will be concluded in Q3. The announcement disappoints some Euro traders who are eager for more hawkish tone. At the time of writing, Aussie is still the worst performing one for the day, followed by Swiss Franc and Euro. Kiwi is the strongest one but Yen and Dollar are also striking back.

Technically, EUR/GBP's break of 0.8294 support suggests that whole rebound from 0.8201 has completed as a three-wave correction at 0.8511. The development revives medium term bearishness and deeper decline could be seen through 0.8201 low for down trend resumption. Immediate focus will now be on whether EUR/USD would drop through 1.0808 temporary low too.

In Europe, at the time of writing, FTSE is up 0.21%. DAX is up 0.62%. CAC is up 0.61%. Germany 10-year yield is up 0.027 at 0.793. Earlier in Asia, Nikkei rose 1.22%. Hong Kong HSI rose 0.67%. China Shanghai SSE rose 1.22%. Singapore Strait Times dropped -0.19%. Japan 10-year JGB yield rose 0.0028 to 0.243.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0836; (P) 1.0865 (R1) 1.0921; More...

EUR/USD retreats sharply after failing to break through 1.0937 minor resistance. Intraday bias remains neutral first. On the downside, sustained break of 1.0805 low will resume larger down trend to 61.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0758, and then 100% projection at 1.0495. On the upside, break of 1.0937 minor resistance will extend the consolidation pattern from 1.0805 with another rising leg. Intraday bias will be back on the upside for stronger rebound. But overall outlook will stay bearish as long as 1.1184 resistance holds.

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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 NZD BusinessNZ Manufacturing Index Mar 53.8 53.6
23:01 GBP RICS Housing Price Balance Mar 74% 78% 79%
01:00 AUD Consumer Inflation Expectations Apr 5.20% 4.90%
01:30 AUD Employment Change Mar 17.9K 30.0K 77.4K
01:30 AUD Unemployment Rate Mar 4.00% 3.90% 4.00%
06:30 CHF Producer and Import Prices M/M Mar 0.80% 0.00% 0.40%
06:30 CHF Producer and Import Prices Y/Y Mar 6.10% 4.90% 5.80%
11:45 EUR ECB Interest Rate Decision 0.00% 0.00% 0.00%
12:30 EUR ECB Press Conference
12:30 CAD Manufacturing Sales M/M Feb 4.20% 0.00% 0.60%
12:30 CAD Wholesale Sales M/M Feb -0.40% 0.70% 4.20%
12:30 USD Initial Jobless Claims (Apr 8) 185K 175K 166K
12:30 USD Retail Sales M/M Mar 0.50% 0.60% 0.30% 0.80%
12:30 USD Retail Sales ex Autos M/M Mar 1.10% 0.70% 0.20% 0.60%
12:30 USD Import Price Index M/M Mar 2.60% 2.30% 1.40% 1.60%
14:00 USD Michigan Consumer Sentiment Index Apr P 58.8 59.4
14:00 USD Business Inventories Feb 1.00% 1.10%
14:30 USD Natural Gas Storage 15B -33B