Sunday, March 16, 2014

Action Insight Daily Report 3-17-14

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Action Insight Market Overview Markets Snapshot

Daily Report: Markets Steady as Crimean Majority Voted Yes to Russia in Controversial Referendum

Markets are rather steady as the week starts. Asian equities are mildly lower but losses are so far very limited. Major currency pairs are staying in tight range. In Crimea, the chief electoral official Mikhail Malyshev was quoted in media saying that over 95% of Crimeans voted in favor of leaving Ukraine and annexation by Russia after three-quarters of votes were counted. And he noted that the 83% turnout was a high figure given the boycott on the vote. Ukraine and Russia have agreed on a truce in Crimea until March 21. Meanwhile, US and European officials have also voiced out that military action is unlikely over Crimea.

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Featured Technical Report

GBP/JPY Daily Outlook

Daily Pivots: (S1) 167.99; (P) 168.67; (R1) 169.41; More.....

Intraday bias in GBP./JPY remains on the downside for the moment. As noted before, the rebound from 163.87 has finished at 173.57 already. Fall from there is viewed as the third leg of the correction pattern from 174.84. Deeper decline would be seen for 163.87 key support next. On the upside, above 170.16 minor resistance will turn bias neutral and bring some consolidations before staging another decline.

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Economic Indicators Update

 

GMT Ccy Events Actual Consensus Previous Revised
0:01 GBP Rightmove House Prices M/M Mar 1.60% 3.30%
10:00 EUR Eurozone CPI M/M Feb F 0.40% -1.10%
10:00 EUR Eurozone CPI Y/Y Feb F 0.80% 0.80%
10:00 EUR Eurozone CPI - Core Y/Y Feb F 1.00% 1.00%
12:30 CAD International Securities Transactions (CAD) Jan 3.24B -4.28B
12:30 USD Empire State Manufacturing Index Mar 6.25 4.48
13:00 USD Net Long-term TIC Flows Jan $30.0B -$45.9B
13:15 USD Industrial Production Feb 0.20% -0.30%
13:15 USD Capacity Utilization Feb 78.60% 78.50%
14:00 USD NAHB Housing Market Index Mar 50 46
 
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency jumped in New York morning, the weaker-than-expected US consumer sentiment data gave the pair an extra boost, offers at 1.3890-00 were filled but sell orders in good size are still noted at 1.3940-50, mixture of offers and stops is tipped at 1.3965-70, more selling interest is located at 1.3985-1.4000 region with more stops placed above sizeable barrier at 1.4000. On the downside, bids are now seen at 1.3900 and 1.3870-75, buy orders are reported at 1.3840 (stops below 1.3830) and further out at 1.3780-90.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Buy at 0.8300

As the single currency has maintained a firm undertone, bullishness remains for the rise from 0.8158 low to bring at least a strong retracement of recent decline to 0.8400-10 and later towards previous resistance at 0.8467, however, loss of near term upward momentum should prevent sharp move beyond latter level and reckon 0.8500 would hold from here, bring retreat later.

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Trade Idea: USD/CAD - Buy again at 1.1000

Although the greenback has retreated after rising to 1.1154 earlier this week and near term downside risk remains for weakness towards 1.1000-10, as price is expected to remain confined within recent established range, downside should be limited to 1.0980-85 and bring another rise later, above said resistance would revive bullishness and bring test of 1.1194, then towards recent high of 1.1224.

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Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530
Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF

Elliott Wave Daily Trade Ideas Update Schedule (GMT):
AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500

Suggested Readings

Fundamental Highlights

Technical Highlights

 

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