Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Mid-Day Report: Dollar Rebounds as Quarter End Position Squaring Starts, Stocks Lifted by Receding Trade War Fear After being pressured initially, Dollar staged a strong come back European session. The greenback is now trading as the strongest one for day, followed by Canadian Dollar and then Yen. On the other hand, Sterling and Euro are suffering broad based selling together with Aussie. There is no apparent catalyst for the move. Fading fear of trade war, or realizing that the theme is exaggerated, or no matter what it's called, lifted global stocks. At the time of writing, DAX is trading up 1.8%, CAC up 1.4% and FTSE up 2%. If that's true, we should be seeing persistent weakness in Yen, and more rebound in Aussie. But that's not what we're seeing today. It's believed that as holiday approaches and without any real market moving events scheduled, traders are already starting quarter-end position squaring. Technical Outlook USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9442; (P) 0.9469; (R1) 0.9493; More... USD/CHF recovered ahead of 0.9423 near term support and intraday bias remains neutral. While rebound from 0.9186 might extend higher, we'd expect strong resistance from0.9626 key fibonacci level to limit upside. That's supported by divergence condition in 4 hour MACD. On the downside, break of 0.9432 support will indicate near term reversal and completion of rebound from 0.9186. In this case, intraday bias will be turned back to the downside for retesting 0.9186 low. However, sustained break of 0.9626 will carry larger bullish implications. Suggested Readings EURJPY Bounces from Recent Lows, Attempts to Break Higher Euro, Pound Erase Gains; European Equities Cheer on Trade Hopes Euro Dips, US Consumer Confidence Next Abating US-China Trade Tensions Boost Sentiment With Equities Rising And Yen Falling Economic Data
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