Dollar Slows Against Europeans, Firm Against Commodity Currencies
Action Insight Mid-Day Report 4-7-22

Dollar Slows Against Europeans, Firm Against Commodity Currencies

Dollar remains generally firm entering into US session, even though upside momentum is diminishing slightly against European majors. Meanwhile weakness in commodity currencies persists, with Aussie being the worst one. Yen is mixed for now but should remain vulnerable on exceptional strength in global benchmark treasury yields.

Technically, focuses firstly stays on commodity-dollar pairs. In particular, break of 0.7455 minor support in AUD/USD and 1.2591 minor resistance would indicate more upside in the greenback, possibly on some deterioration in market sentiments too. At the same time, USD/JPY could also be ready to extend rebound from 121.27 to retest 125.09 high. Break of this high would indicate return to selling in Yen.

In Europe, at the time of writing, FTSE is down -0.08%. DAX is up 0.61%. CAC is up 0.65%. Germany 10-year yield is up 0.0489 at 0.698. Earlier in Asia, Nikkei dropped -1.69%. Hong Kong HSI dropped -1.23%. China Shanghai SSE dropped -1.42%. Singapore Strait Times dropped -0.55%. Japan 10-year JGB yield dropped -0.0070 to 0.245.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0869; (P) 1.0903 (R1) 1.0932; More...

EUR/USD is losing some downside momentum as seen in 4 hour MACD, but further decline is expected with 1.0987 minor resistance intact. Deeper decline would be seen to 1.0805 low. Firm break there will resume larger down trend from 1.2248. Next target is 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, above 1.0987 minor resistance will mix up the outlook and bring recovery.

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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
22:30 AUD AiG Performance of Services Index Mar 56.2 60
01:30 AUD Trade Balance (AUD) Feb 7.46B 11.70B 12.89B 11.79B
05:00 JPY Leading Economic Index Feb P 110.9 103 102.5
05:45 CHF Unemployment Rate Mar 2.20% 2.20% 2.20% 2.30%
06:00 EUR Germany Industrial Production M/M Feb 0.20% 0.00% 2.70%
07:00 CHF Foreign Currency Reserves (CHF) Mar 911B 938B
09:00 EUR Eurozone Retail Sales M/M Feb 0.30% 0.60% 0.20%
11:30 EUR ECB Monetary Policy Meeting Accounts
12:30 USD Initial Jobless Claims (Apr 1) 166K 200K 202K 171K
14:30 USD Natural Gas Storage 18.0B 26B