Thursday, June 25, 2015

Action Insight Daily Report 6-26-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Risk Markets Lower as Greece Worries Persist

Asian markets open broadly lower, following global markets, as worries on Greece persists. German Chancellor Angela Merkel said that "we don't yet have the necessary progress" regarding the debt negotiation. Instead, she noted that "one even has the impression that we've regressed a bit". Nonetheless, French President Francois Hollande said that an agreement was "possibly and is necessary". Markets are still awaiting the results of the two day summit of Eurozone finance ministers in Brussels. And there are talks that if a deal couldn't be reached by Greece and international creditors by Saturday, EU officials would start turning their attention to managing the scenario of a default. Meanwhile, IMF spokesman Gerry Rice said that it still expected Greece to repay EUR 1.6b on the deadline next Tuesday.

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Featured Technical Report

USD/JPY Daily Outlook

Daily Pivots: (S1) 123.30; (P) 123.63; (R1) 123.94; More...

USD/JPY dips mildly today but stays in range of 122.45/124.43. Intraday bias remains neutral at this point. The consolidation from 125.85 is still in progress and could extend further. Above 124.43 will bring retest of 125.85 but firm break there is needed to confirm up trend resumption. Otherwise, we'd likely see more corrective sideway trading. Below 122.45 will target 61.8% retracement of 118.88 to 125.85 at 121.54.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
22:45 NZD Trade Balance (NZD) May 350M -50M 123M 183M
23:30 JPY Unemployment Rate May 3.30% 3.30% 3.30%
23:30 JPY Household Spending Y/Y May 4.80% 3.70% -1.30%
23:30 JPY National CPI Core Y/Y May 0.10% 0.00% 0.30%
23:30 JPY Tokyo CPI Core Y/Y Jun 0.10% 0.10% 0.20%
8:00 EUR Eurozone M3 Y/Y May 5.40% 5.30%
14:00 USD U. of Michigan Confidence Jun F 94.6 94.6
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency continued to trade narrowly and offers are still noted at 1.1235-45 and 1.1280, more sell orders are reported at 1.1300 and 1.1330, selling interest is tipped at 1.1350 and 1.1365. On the downside, some bids are seen at 1.1150-55 and 1.1130 (stops below 1.1120), buy orders are expected at 1.1100, 1.1080 and 1.1050, buying interest should emerge around 1.1030 and 1.1000.

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Forex Trade Ideas

Trade Idea : EUR/GBP - Sell at 0.7175

Euro's recovery after falling to 0.7080 yesterday suggests consolidation above this level would be seen and corrective bounce to 0.7150 cannot be ruled out, however, reckon 0.7175-80 would limit upside and bring another decline later, a break of said support at 0.7080 would extend weakness to 0.7055, however, break there is needed to add credence to our view that wave v is underway for retest of wave iii trough at 0.7014

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Trade Idea: USD/CAD - Buy at 1.2280

As the greenback has eased after rising to 1.2423, suggesting consolidation would be seen and pullback to 1.2300-10 cannot be ruled out, however, reckon 1.2277 support (yesterday's low) would limit downside and bring another rise later, above said resistance would add credence to our view that wave ii has possibly ended at 1.2128 last week and extend the rebound from there towards 1.2470-75

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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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