Action Insight Weekly Report 5-19-18
Action Insight Weekly Report 5-19-18 | Dollar Rally Limited by a Number of Political Factors, Swiss Franc Ended as Strongest | Swiss Franc ended last week as the strongest one, very much thanks to the selloff in EUR/CHF. Uncertainty over the EU policy of the new Italian government sent Euro broadly lower, which ended as the weakest. Despite surge in 10 year yield to 7-year high, Dollar could only extend recent rally against Euro and Yen. The greenback, admittedly, ended as the second strongest one. But a number of political factors are limiting the greenback's strength despite firm expectation of rate path. Dollar is seen as in consolidation mode as we suggested last week, despite the rise against Euro and yen. | | EUR/USD Weekly Outlook EUR/USD's fall extend to as low as 1.1749 last week and there is no clear sign of bottoming yet. Initial bias remains on the downside this week first. Current decline from 1.2555 should target 1.1708 medium term fibonacci level next. Break will target 1.1553 support. On the upside, above 1.1821 minor resistance will turn bias neutral again. But outlook will continue to stay bearish as long as 1.1995 resistance holds. | | | | |