Action Insight Weekly Report 4-28-18
| Action Insight Weekly Report 4-28-18 | | Dollar and Yield Reached Critical Junctures after Strong Rally, Determining Events ahead | Dollar was given a powerful boost last week on a couple of factors. Firstly, 10 year yield extended recent bull run and hit 3% level for the first time since 2014. Secondly, Euro was sold off steeply after the confusing messages from ECB President Mario Draghi during the post meeting press conference. The common currency was then pressured further after French GDP miss. Thirdly, Sterling joined the selloff after poor Q1 GDP result that almost killed off the chance of a May BoE rate hike. Fourthly, Dollar managed to secure most of the weekly gains after better than expected Q1 GDP result from the US. |  | EUR/USD Weekly Outlook EUR/USD's dropped sharply to 1.2054 last week. The strong break of 1.2154 key support confirmed medium term topping at 1.2555. But as a temporary low as formed at 1.2054, initial bias is neutral this week for some consolidations first. Upside of recovery should be limited by 1.2214 support turned resistance to bring another decline. Below 1.2054 will target 161.8% projection of 1.2475 to 1.2214 from 1.2413 at 1.1991 first. Break will target 200% projection at 1.1891. |  | | | |
