Dollar Drops Further after GDP and Job Misses, Gold Surges
Action Insight Mid-Day Report 7-29-21

Dollar Drops Further after GDP and Job Misses, Gold Surges

Dollar's decline continues and accelerates a little in early US session after weak economic data. Gold is also accelerating upwards, in tandem with the greenback's movements. Yen is following as second worst for now, following recovery in European stocks and US futures. Commodity currencies and Sterling are currently the stronger ones for today.

Technically, immediate focus is now on 1.1880 resistance in EUR/USD. Sustained break there should confirm short term bottoming at 1.1751. Further break of 1.1974 resistance will likely pave the way back to retest 1.2265/2348 resistance zone. At the same time, break of 1833.91 resistance in Gold will resume the rise from 1750.49 to 61.8% retracement of 1916.30 to 1750.49 at 1852.96 next. Both developments, if happen, will double confirm Dollar's weakness.

In Europe, at the time of writing, FTSE is up 0.92%. DAX is up 0.43%. CAC is up 0.72%. Germany 10-year yield is up 0.018 at -0.430. Earlier in Asia, Nikkei rose 0.73%. Hong Kong HSI rose 3.30%. China Shanghai SSE rose 1.49%. Singapore Strait Times rose 1.24%. Japan 10-year JGB yield rose 0.0057 to 0.022.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1795; (P) 1.1823; (R1) 1.1871; More...

Immediate focus is now on 1.1880 resistance in EUR/USD. Firm break there will firstly indicate short term bottoming at 1.1751, on bullish convergence condition in 4 hour MACD. Intraday bias will be turned back to the upside for 1.1974 resistance first. Sustained break there will argue that whole corrective pattern from 1.2348 has completed, and bring stronger rise back to 1.2265/2348 resistance zone. On the downside, break of 1.1751 will resume the fall from 1.2265, as the third leg of correction from 1.2348, to 1.1703 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
01:00 NZD ANZ Business Confidence Jul -3.8 -0.6
01:30 AUD Import Price Index Q/Q Q2 1.90% 0.20% 0.20%
07:55 EUR Germany Unemployment Rate Jul 5.70% 5.80% 5.90%
07:55 EUR Germany Unemployment Change Jul -91K -25K -38K
08:30 GBP Net Lending to Individuals (GBP) Jun 18.2B 6.8B 6.9B 7.2B
08:30 GBP Mortgage Approvals Jun 81K 85K 88K
08:30 GBP M4 Money Supply M/M Jun 0.50% 0.30% 0.40%
09:00 EUR Eurozone Economic Sentiment Indicator Jul 119 118.8 117.9
09:00 EUR Eurozone Services Sentiment Jul 19.3 19.5 17.9
09:00 EUR Eurozone Industrial Confidence Jul 14.6 13 12.7 12.8
09:00 EUR Eurozone Consumer Confidence Jul F -4.4 -4.4 -4.4 -3.3
12:00 EUR Germany CPI M/M Jul P 0.90% 0.50% 0.40%
12:00 EUR Germany CPI Y/Y Jul P 3.80% 3.20% 2.30%
12:30 USD Initial Jobless Claims (Jul 23) 400K 365K 419K 424K
12:30 USD GDP Annualized Q2 P 6.50% 8.20% 6.40%
12:30 USD GDP Price Index Q2 P 6.10% 5.40% 4.30%
14:00 USD Pending Home Sales M/M Jun 0.80% 8.00%
14:30 USD Natural Gas Storage 41B 49B