Dollar and Yen the Runaway Leader on Increasing Risk of Correction in Stocks
Action Insight Weekly Report 9-18-21
Dollar and Yen the Runaway Leader on Increasing Risk of Correction in Stocks

Dollar and Yen were the runaway leaders in the forex markets last week. While Fed is not quite likely to announce tapering this week, recent solid data argues that November would finally be the date. Stocks in US and Europe have been losing much upside momentum as central banks are starting to prepare for slowing down stimulus.

Besides there are concerns over re-escalating tension between China and US, with the latter's close allies of UK and Australia added to the mix. The scale of the impact of China's Evergrande trouble is also worrying, in the background of slowdown in the economy.

Overall, development in major indexes continue to point to increasing chance of a correction. Though, Yen was somewhat still supported additionally by the powerful Nikkei. On the other hand, Australian and New Zealand Dollars ended the the worst performing ones, together with Swiss Franc.

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Central Bank Views | China Watch | Oil N' Gold | Special Topics

USD/CAD Weekly Outlook

After some consolidations, USD/CAD's rebound from 1.2492 resumed by breaking through 1.2760. Initial bias is back on the upside this week for retesting 1.2947 high first. Also, larger rise from 1.2005 is still in progress with 1.2421 support intact. Break of 1.2947 will target 1.3022 fibonacci level next. On the downside, though, break of 1.2635 minor support will turn bias back to the downside for 1.2421 structural support.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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