Monday, June 22, 2015

Action Insight Daily Report 6-23-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Sentiments Boosted by Greek Optimism, Dollar Rebounds

Optimism on progress in Greece debt negotiation gave risk markets a strong boost overnight. DJIA rose 103.83 pts, or 0.58%, to close at 18119.78 while S&P 500 rose 12.86 pts, or 0.61%, to close at 2122.85. NASDAQ closed at new record high of 5153.97, up 36.97 pts or 0.72%. Asian markets also followed with Nikkei trading up 300 pts, or over 1.5% at the time of writing. Meanwhile, in the currency markets, dollar is indeed the main beneficiary of the return of risk appetite and is trading broadly higher against other major currencies. The dollar index is back above 94.8 after dipping to 93.56 last week. Rebound in the greenback sent gold below 1200 again, which is trading at 1185. Crude oil, on the other hand, stays in tight range around 60 handle.

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Featured Technical Report

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2241; (P) 1.2284; (R1) 1.2352; More...

USD/CAD rebound from 1.2127 extends higher with focus staying on 1.2360 minor resistance. Pull back from 1.2562 is viewed as a correction and break of 1.2360 will confirm its completion at 1.2127. In such case, intraday bias will be turned back to the upside for retesting 1.2562 resistance first. Break will extend the rebound from 1.1919 to retest 1.2834 high.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
0:00 AUD Conference Board Leading Index Apr -0.30% -0.10%
1:30 AUD House Price Index Q/Q Q1 1.60% 2.10% 1.90% 2.00%
1:35 JPY Manufacturing PMI Jun P 49.9 50.6 50.9
1:45 CNY HSBC Manufacturing PMI Jun P 49.6 49.2 49.2
7:00 EUR France Manufacturing PMI Jun P 50.1 49.4
7:00 EUR France Services PMI Jun P 52.5 52.8
7:30 EUR Germany Manufacturing PMI Jun P 51.5 51.1
7:30 EUR Germany Services PMI Jun P 52.9 53
8:00 EUR Eurozone Manufacturing PMI Jun P 52 52.2
8:00 EUR Eurozone Services PMI Jun P 53.7 53.8
10:00 GBP CBI Trends Total Orders Jun 3 -5
12:30 USD Durable Goods Orders May -0.60% -0.50%
12:30 USD Durables Ex Transportation May 0.80% 0.50%
13:00 USD House Price Index M/M Apr 0.60% 0.30%
14:00 USD New Home Sales May 513K 517K
Orders and Options Watch

US Session: Orders and Options Watch

EUR: Euro's retreat from 1.1404 found support at 1.1312 and has recovered, however, offers are still noted at 1.1380, 1.1400 and 1.1430 (stops above 1.1440), sell orders are expected at 1.1450, 1.1475 and 1.1500, selling interest is reported at 1.1530 and 1.1550. On the downside, bids remain at 1.1300-10, 1.1285 and 1.1240, buying interest is tipped at 1.1220, 1.1200 and 1.1185, fresh demand should emerge around 1.1150, 1.1130 and 1.1100.

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Forex Trade Ideas

Trade Idea: USD/CAD - Hold long entered at 1.2220

The greenback did find renewed buying interest at 1.2218 earlier today (we recommended on Friday to buy at 1.2220 and a long position was entered) and has rebounded, retaining our bullishness for gain towards resistance at 1.2361 but break there is needed to add credence to our view that low has been formed at 1.2128 last week, bring a stronger rebound to 1.2400-10, then 1.2440-45, however, only break of 1.2470-75 would signal the retreat from 1.2563 has ended

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Trade Idea: EUR/GBP - Sell at 0.7310

As the single currency has rebounded after finding support at 0.7125 (Friday's low), suggesting consolidation above this level would be seen and corrective bounce to 0.7240-50 would be seen, however, reckon upside would be limited to 0.7300-10 and bring another fall later. Below 0.7125 would extend the fall from 0.7389 to 0.7100, however, as broad outlook remains consolidative, reckon downside would be limited and price should stay well above support at 0.7055

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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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