Action Insight Mid-Day Report 4-7-20

Stocks Rebound as Germany Prepares Lockdown Exit But Japan Readies State of Emergency

Action Insight Mid-Day Report 4-7-20 Dollar Selloff Extends as Stock Rebound Gathers Momentum Global stock market rebound continues today on optimism the world is finally seeing the coronavirus curve flattening. As US futures point to another day of high open, current rebound is starting to look sustainable. In the currency markets, Australian Dollar continues to lead the way higher, followed by New Zealand Dollar. Sterling shrugs off the health condition of Prime Minister Boris John and is current the third strongest. Dollar is the weakest one on reverse safe haven flow, followed by Yen and then Swiss Franc. Technically, EUR/USD's breach of 1.0902 minor resistance suggests that pull back from 1.1147 has completed. Further rise could be seen, as the third leg of the corrective pattern from 1.0635, for 1.1167 fibonacci level. EUR/JPY's break of 118.87 minor resistance suggests that 116.12 support was defended. Strong rise is likely for 121.14 resistance and above. AUD/USD is pressing 0.6213 resistance now and break will extend the rebound form 0.5506 to 0.6416 projection level. In Europe, currently, FTSE is up 3.05%. DAX is up 3.73%. CAC is up 2.91%. German 10-year yield is up 0.076 at -0.349. Earlier in Asia, Nikkei rose 2.01%. Hong Kong HSI rose 2.12%. China Shanghai SSE rose 2.05%. Singapore Strait Times rose 4.10%. Japan 10-year JGB yield rose 0.0020 to 0.006. Full Report Here Japan Abe formally declare emergency, approved JPY 108T stimulus UK PM Johnson receives oxygen support in ICU, Raab deputize RBA kept cash rate at 0.25%, very large economic contraction expected... Australia AiG services index dropped to 38.7, lowest since 2009 New York Fed: Consumers see chance of job loss jumped Gold resumes rebound, heading back to 1700, but no break expected Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol Aussie Gained as RBA Hinted the Possibility of Easing the Pace... CFTC Commitments of Traders – Bets on Higher Oil Price Could... CFTC Commitments of Traders – Bet on Higher Euro should Fade... Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0762; (P) 1.0799; (R1) 1.0829; More... EUR/USD's break of 1.0902 minor resistance suggests the fall from 1.1147 has completed. Rise form 1.0758 could be the third leg of the corrective pattern from 1.0635. Intraday bias is back on the upside for 61.8% retracement of 1.1496 to 1.0635 at 1.1167 first. On the downside, break of 1.0768 will resume the fall to retest 1.0635 low instead. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Brent Futures Complete Double Bottom at 24.55; Surpass SMAs Dollar Slips Amid Risk-On Mood EURJPY Rises Slightly But Retains Neutral Outlook Investors Buoyed As Europe Turns A Corner Dollar Retreats, Equities Squeeze Higher As Contagion Slows EURGBP May Have More Downside Ahead USDCAD Tilts Negative After Bollinger Bands Squeeze GBPUSD Still Holds Above 38.2% Fibo, More Gains Are Expected Equities Rally As New Coronavirus Cases Slow. Johnson's Absence Raise Questions In The UK A Bumpy Road Ahead Fundamental Analysis | Technical Analysis In-depth Reports Australia's Exceptional Expansion: All Good Things Must Come To An End Is this a Light at the End of the Stock Tunnel or Just a Flashlight? Oil Rally likely Short-lived as Coordinated Output Cut Could Take Long to Materialize Australia: JobKeeper Payment to Reduce Peak Unemployment Rate from 17% to 9% COVID-19: A Black Swan or a Group of Black Swans? Canadian Dollar Weakened but Not Headed for Historical Lows Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:00 NZD NZIER Business Confidence Q1 -70% -21% 22:30 AUD AiG Performance of Services Index Mar 38.7 47 23:30 JPY Labor Cash Earnings Y/Y Feb 1.00% 0.20% 1.50% 1.20% 23:30 JPY Overall Household Spending Y/Y Feb -0.30% -3.90% -3.90% 1:30 AUD Trade Balance (AUD) Feb 4.36B 3.75B 5.21B 4.75B 4:30 AUD RBA Interest Rate Decision 0.25% 0.25% 0.25% 5:00 JPY Leading Economic Index Feb P 92.1 90.4 90.5 6:00 EUR Germany Industrial Production M/M Feb 0.30% -1.00% 3.00% 6:45 EUR France Trade Balance (EUR) Feb -5.2B -5.1B -5.9B -6.0B 7:00 CHF Foreign Currency Reserves (CHF) Mar 766B 769B 8:00 EUR Italy Retail Sales M/M Feb 0.80% 0.40% 0.00% 14:00 CAD Ivey PMI Mar 50.1 54.1

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