Tuesday, June 2, 2015

Action Insight Daily Report 6-3-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Euro Maintains Gain on Greece Optimism

Euro rebounded strongly yesterday and stayed firm in Asian session. News regarding Greece was seen as the main driver in the rebound. It's reported that Greece's international creditors are giving the country a final take-it-or-leave-it offer aiming at breaking the neverending stalemate in the negotiations. Greece is expected to accept it with at most minor changes. European commission president Jean-Claude Juncker is set to meet with Greek prime minister Alexis Tsipras today in Brussel. The outcome of the meeting will be closely watched. Also, it's reported the ECB raised the level of emergency cash available to Greek banks by EUR 500m. Technically, EUR/USD strong rebound suggests that the corrective pattern from 1.0461 is still in progress and is possibly in another rising leg for 1.1466 and above. Picture in EUR/GBP is similar is rebound from 0.7054 is seen as the third leg of the consolidation pattern from 0.7013 and could head to 0.7482 resistance now. EUR/JPY also resumed recent rise from 126.09.

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Featured Technical Report

EUR/JPY Daily Outlook

Daily Pivots: (S1) 136.70; (P) 137.78; (R1) 139.47; More...

EUR/JPY soars to as high as 138.84 as the rise from 126.09 resumed. Intraday bias is back on the upside. Current rise would now target 61.8% retracement of 149.76 to 126.09 at 140.71. Such rise is seen as the send leg of the consolidation pattern fro 149.76. We'd be cautious on topping above 140.71. On the downside, below 136.95 minor support will turn bias neutral and bring retreat. But outlook will stays bullish as long as 133.09 support holds and further rally is in favor.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:01 GBP BRC Shop Price Index Y/Y May -1.90% -1.90%
1:30 AUD GDP Q/Q Q1 0.90% 0.50% 0.50%
7:45 EUR Italy Services PMI May 52.60% 53.1
8:00 EUR Eurozone Services PMI May F 53.3 53.3
8:30 GBP Services PMI May 59.2 59.5
9:00 EUR Eurozone Unemployment Rate Apr 11.20% 11.30%
9:00 EUR Eurozone Retail Sales M/M Apr 0.60% -0.80%
11:45 EUR ECB Rate Decision 0.05% 0.05%
12:15 USD ADP Employment Change May 190K 169K
12:30 CAD International Merchandise Trade (CAD) Apr -1.95B -3.02B
12:30 USD Trade Balance Apr -$43.2B -$51.4B
14:00 USD ISM Non-Manufacutring Composite May 56.9 57.8
14:30 USD Crude Oil Inventories -2.8M
18:00 USD Fed Beige Book
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency rallied today in part due to speculation of a possible Greece deal, offers at 1.1000, 1.1020, 1.1050, 1.1080, 1.1100, 1.1130 and 1.1150 were filled, however, some sell orders are reported at 1.1200 and 1.1220, selling interest is tipped further out at 1.1250-60 and 1.1300-10. On the downside, bids are now seen at 1.1100, 1.1060-65 and 1.1025-30, more buy orders are expected at 1.1000, 1.0980 and 1.0950-60 with stops placed below 1.0940 and 1.0915-20.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Buy at 0.7230

Euro's rally after finding renewed buying interest at 0.7146 yesterday, signals the fall from 0.7483 has ended at 0.7055 and consolidation with upside bias is seen for gain to 0.7320 (61.8% Fibonacci retracement of 0.7483-0.7055), however, reckon upside would be limited to 0.7350 and price should falter below 0.7400, bring retreat later.

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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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