Gold Upside Breakout, Dollar Back Under Pressure
Action Insight Mid-Day Report 7-14-21

Gold Upside Breakout, Dollar Back Under Pressure

Dollar is back under pressure again as risk-on sentiments seem to be back as indicated by US futures. Swiss Franc and Euro are not too far away, as both turn softer, while Yen is following. On the other hand, New Zealand Dollar continues to lead the way after RBNZ's halt of asset purchase program. Canadian Dollar is also firm as focus turns to BoC policy decision, at which further tapering should be announced.

Technically, Gold's upside breakout suggests that rebound from 1750.49 has resumed. Notable support was seen from 4 hour 55 EMA, which is a near term bullish sign. Further rise is expected as long as 1798.44 support holds, targeting 61.8% retracement of 1916.30 to 1750.49 at 1852.96. Sustained break there will pave the way to 1916.30 key structural resistance. Such development could be an indication of more downside in Dollar ahead.

In Europe, at the time of writing, FTSE is down -0.38%. DAX is up 0.04%. CAC is down -0.07%. Germany 10-year yield is down -0.0145 at -0.308. Earlier in Asia, Nikkei dropped -0.38%. Hong Kong HSI dropped -0.63%. China Shanghai SSE dropped -1.07%. Singapore Strait Times dropped -0.43%. Japan 10-year JGB yield dropped -0.0047 to 0.021.

Full Report Here

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

BOC Preview - Hawkish Stance to Maintain with More Tapering
RBNZ Preview - Strong GDP Growth and Inflation Expectations to Anchor RBNZ Optimism
CFTC Commitments of Traders - Traders Increased Bets in USD Futures amidst Price Rebound
Central Bank Views | China Watch | Oil N' Gold | Special Topics

USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9153; (P) 0.9177; (R1) 0.9211; More....

USD/CHF weakens after failing to sustain above 4 hour 55 EMA, but downside is contained well above 0.9129 support. Intraday bias remains neutral first. Risk is mildly on the downside with 0.9273 resistance intact. On the downside, sustained trading below 55 day EMA (now at 0.9126) will affirm the case that rebound from 0.8925 has completed at 0.9273. Deeper fall would then be seen back to retest 0.8925 low. On the upside though, break of 0.9273 and sustained trading above 61.8% retracement of 0.9471 to 0.8925 at 0.9262 will target 0.9471 resistance next.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

AUD/USD Has Strong Support at 0.7360

NZD Soars As RBNZ Stops Asset Purchases

NZDUSD Stabilizes Below 200-MA, Negative Pressures Endure

US CPI Spikes Again, Dollar Rallies, Kiwi Surges Too After RBNZ Ends QE

CAD/JPY Points To Trend Deterioration

USDJPY Fails To Beat 20-Day SMA, Holds In Ascending Channel

Two Trades To Watch: GBP/USD, WTI Oil

NZD/USD Jumps Beyond 0.70, Up From 0.6948

US Inflation Surprises On The Upside Again

Stand By For Action – RBNZ Monetary Policy Review, July 2021

Fundamental Analysis | Technical Analysis
In-depth Reports
What Does Central Bank Divergence Mean for FX?
ECB Strategic Review: Striving for Symmetry
FOMC Minutes Reveals that QE Tapering to Begin Later this Year
Can the Delta Variant Wreck Hopes of an End to Lockdowns?
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
00:30 AUD Westpac Consumer Confidence Jul 1.50% -5.20%
02:00 NZD RBNZ Interest Rate Decision 0.25% 0.25% 0.25%
04:30 JPY Industrial Production M/M May F -6.50% -5.90% -5.90%
06:00 GBP CPI M/M Jun 0.50% 0.20% 0.60%
06:00 GBP CPI Y/Y Jun 2.50% 2.20% 2.10%
06:00 GBP Core CPI Y/Y Jun 2.30% 2.00% 2.00%
06:00 GBP RPI M/M Jun 0.70% 0.30% 0.30%
06:00 GBP RPI Y/Y Jun 3.90% 3.40% 3.30%
06:00 GBP PPI Input M/M Jun -0.10% 1.20% 1.10% 1.20%
06:00 GBP PPI Input Y/Y Jun 9.10% 10.80% 10.70% 10.40%
06:00 GBP PPI Output M/M Jun 0.40% 0.60% 0.50% 0.80%
06:00 GBP PPI Output Y/Y Jun 4.30% 4.80% 4.60% 4.40%
06:00 GBP PPI Core Output M/M Jun 0.30% 0.30% 0.40% 0.70%
06:00 GBP PPI Core Output Y/Y Jun 2.70% 3.20% 2.70% 2.30%
09:00 EUR Eurozone Industrial Production M/M May -1.00% 0.20% 0.80% 0.60%
12:30 USD PPI M/M Jun 1.00% 0.50% 0.80%
12:30 USD PPI Y/Y Jun 7.30% 7.10% 6.60%
12:30 USD PPI Core M/M Jun 1.00% 0.40% 0.70%
12:30 USD PPI Core Y/Y Jun 5.60% 5.30% 4.80%
12:30 CAD Manufacturing Sales M/M May -0.60% -1.10% -2.10%
14:00 CAD BoC Interest Rate Decision 0.25% 0.25%
14:30 USD Crude Oil Inventories -4.3M -6.9M
15:15 CAD BoC Press Conference
18:00 USD Fed's Beige Book