Friday, June 5, 2015

Action Insight Mid-Day Report 6-5-15

ActionForex.com
Action Insight Market Overview Markets Snapshot

Dollar Surges on Strong Non-Farm Payroll

Dollar surges in early US session after much better than expected job data. Non-farm payroll report showed 280k growth in May versus expectation of 218k. Prior month's figure was revised slightly down from 223k to 221k. Unemployment rate rose to 5.5% but that was mainly due to more people entering the labor force. The participation rate rose to 62.9%, up from 62.8%. Also average hourly earnings rose 0.3% mom, 2.3% you. The year-over-year rate was the highest since August 2013. Dollar index is back above 96.6 after dipping to 94.65 earlier this week. Dollar is seen broadly higher, in particular, with USD/JPY breaking 125 handle.

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Featured Technical Report

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 123.86; (P) 124.26; (R1) 124.76; More...

USD/JPY's rally resumes and reaches as high as 125.72 so far. Intraday bias is back on the upside. Current rally should target 61.8% projection of 105.19 to 121.84 from 118.88 at 129.16 next. On the downside, break of 124.40 minor support will turn bias neutral and bring consolidations again before staging another rally.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
05:00 JPY Leading Index Apr P 107.2 107.3 106
06:00 EUR German Factory Orders s.a. M/M Apr 1.40% 0.60% 0.90% 1.10%
07:00 CHF Foreign Currency Reserves May 517.5B 521.9B 522.2B
12:30 USD Change in Non-farm Payrolls May 280K 218K 223K 221k
12:30 USD Unemployment Rate May 5.50% 5.40% 5.40%
12:30 USD Average Hourly Earning M/M May 0.30% 0.20% 0.10%
12:30 CAD Net Change in Employment May 58.9K 10.2K -19.7K
12:30 CAD Unemployment Rate May 6.80% 6.80% 6.80%
Orders and Options Watch

US Session: Orders and Options Watch

JPY: Dollar surged in NY morning after NFP, offers at 125.00, 125.20, 125.50 and 125.75 were filled but sell orders are still noted at 125.90-00 and 126.20-25, more selling interest is tipped at 126.50, 126.75 and 127.00. On the downside, bids are raised to 125.40, 125.20 and 125.00-05, some stops are placed below 124.80 and 124.60, buying interest should emerge around 124.30-40 and 124.00.

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Forex Trade Ideas

Trade Idea Update: USD/JPY - Buy at 125.20

Current rally on dollar's broad-based strength after the release of US data signals medium term upmove is still in progress and bullishness is seen for further gain to 126.00, above there would extend headway to 126.30 and later towards 126.50 but near term overbought condition should prevent sharp move beyond there, bring retreat later.

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Trade Idea Update: EUR/USD - Sell at 1.1150

The single currency met renewed selling interest right at intra-day resistance at 1.1280 again and has dropped in US opening on NFP, adding credence to our view that top has been formed at 1.1380 yesterday and downside bias is seen for weakness to 1.1060-70, then towards 1.1030-35 (61.8% Fibonacci retracement of 1.0819-1.1380) but break of previous resistance at 1.1006 is needed to signal the rebound from 1.0819 has ended

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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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