Thursday, July 9, 2015

Action Insight Daily Report 7-10-15

ActionForex.com
Action Insight Market Overview Markets Snapshot

Daily Report: Euro Higher, Yen Lower as Greece Submitted Detailed Bailout Proposal

The Japanese yen weakens broadly today on broad based rally in Asian markets. Sentiments improved with rebound in China markets as well as news over Greece. Nikkei is trading up over 80 pts, or 0.4% at the time of writing and is heading back towards 20000 handle. China's Shanghai composite is up over 5% and reclaimed 3900 handle while Hong Kong HSI is up over 1.8%. Dollar also follows the yen lower while Euro is broadly higher. Markets seem to be optimistic that a deal could be reached by Greece and European creditors on a crisis summit on Sunday. We'd likely see some more upside in stocks and Euro for today.

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Featured Technical Report

USD/JPY Daily Outlook

Daily Pivots: (S1) 120.65; (P) 121.11; (R1) 121.76; More...

Recovery from 120.40 temporary low extends today but USD/JPY is kept below 122.45 support turned resistance. Intraday bias remains neutral for the moment. Deeper decline remains mildly in favor and below 120.40 will target 118.88 key support level. It's early to confirm but bearish divergence condition in daily MACD is taken as the first sign of medium term reversal. Meanwhile, on the upside, break of 122.45 support turned resistance will indicate completion of the fall and will turn bias back to the upside.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:50 JPY Domestic CGPI Y/Y Jun -2.40% -2.20% -2.10%
1:30 AUD Home Loans May -6.10% -2.80% 1.00% 0.70%
5:00 JPY Consumer Confidence Index Jun 41.9 41.4
8:30 GBP Visible Trade Balance (GBP) May -9.7B -8.6B
12:30 CAD Net Change in Employment Jun -4.5K 58.9K
12:30 CAD Unemployment Rate Jun 6.90% 6.80%
14:00 USD Wholesale Inventories May 0.20% 0.40%
14:00 USD Wholesale Trade Sales M/M May 0.30% 1.60%
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency retreated after intra-day brief rise to 1.1125 but buy orders are still noted at 1.1020 and 1.1000-05, buying interest is tipped at 1.0970-75 and 1.0940-50, mixture of bids and stops is located at 1.0910-20, fresh demand should emerge around 1.0900, 1.0880, 1.0850 barrier and 1.0825. On the upside, offers are seen at 1.1070-75, 1.1090-00 (stops above) and 1.1120, selling interest should emerge around 1.1145-50, 1.1180 and 1.1200, sellers are awaiting at 1.1220-25 and 1.1245-50.

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Forex Trade Ideas

Trade Idea: USD/CAD - Buy at 1.2580

The greenback has traded narrowly after rising to 1.2780 earlier this week and further consolidation is in store, however, downside should be limited to 1.2640-50 and renewed buying interest should emerge above 1.2560-70, bring another upmove later, above said resistance at 1.2780 would extend recent upmove in wave iii from 1.2128 (wave ii trough) to 1.2800, then 1.2835

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Trade Idea: EUR/JPY - Target met and stand aside

Although the single currency did fall again after meeting renewed selling interest at 135.43 in line with our bearish expectations and downside target at 133.40 had been met (our short position entered at 135.40 met target at 133.40 with 200 points profit), as euro found support at 133.31 and rebounded since, suggesting consolidation would be seen. Only above 135.05-10 would suggest low is possibly formed, bring test of said resistance at 135.43

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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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