Monday, July 13, 2015

Action Insight Daily Report 7-14-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Sentiments Lifted by Easing Greece Concerns, Dollar Firm

US equities rose sharply overnight while dollar is broadly higher as the concerns over Greece averted. DJIA gained 217.27 pts, or 1.22% to close at 17977.68 while S&P 500 rose 22.98 pts, or 1.11% to close at 2099.60. Easing concerns on Greece would likely leave the room for Fed to lift interest rate from near zero level finally in September. The focus will turn to Fed chair Janet Yellen's testimony as well a string of important economic data this week. Yellen would probably reiterate that incoming data broadly support the central bank's latest forecasts, a rate hike would be warranted by the end of the year.

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Featured Technical Report

AUD/USD Daily Outlook

Daily Pivots: (S1) 0.7369; (P) 0.7418; (R1) 0.7455; More...

AUD/USD recovers mildly today ahead of 0.7371 temporary low and intraday bias remains neutral for the moment. The consolidation could extend but upside of recovery would be limited by 0.7597 support turned resistance and bring fall resumption. Below 0.7371 would target long term fibonacci level at 0.7182 next.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:01 GBP BRC Retail Sales Monitor Y/Y Jun 1.80% 0.00%
1:30 AUD NAB Business Confidence Jun 10 7 8
6:00 EUR German CPI M/M Jun F -0.10% -0.10%
6:00 EUR German CPI Y/Y Jun F 0.30% 0.30%
7:15 CHF Producer & Import Prices M/M Jun 0.20% -0.80%
7:15 CHF Producer & Import Prices Y/Y Jun -6.00%
8:30 GBP CPI M/M Jun 0.10% 0.20%
8:30 GBP CPI Y/Y Jun 0.00% 0.10%
8:30 GBP Core CPI Y/Y Jun 0.90% 0.90%
8:30 GBP RPI M/M Jun 0.10% 0.20%
8:30 GBP RPI Y/Y Jun 1.00% 1.00%
8:30 GBP PPI Input M/M Jun -0.80% -0.90%
8:30 GBP PPI Input Y/Y Jun -11.80% -12.00%
8:30 GBP PPI Output M/M Jun 0.10% 0.10%
8:30 GBP PPI Output Y/Y Jun -1.50% -1.60%
8:30 GBP PPI Output Core M/M Jun 0.00% 0.00%
8:30 GBP PPI Output Core Y/Y Jun 0.10% 0.10%
8:30 GBP DCLG UK House Prices Y/Y May 5.90% 5.50%
9:00 EUR Eurozone Industrial Production M/M May 0.20% 0.10%
9:00 EUR German ZEW (Economic Sentiment) Jul 30 31.5
9:00 EUR German ZEW (Current Situation) Jul 60 62.9
9:00 EUR Eurozone ZEW (Economic Sentiment) Jul 51.1 53.7
12:30 USD Advance Retail Sales Jun 0.30% 1.20%
12:30 USD Retail Sales Less Autos Jun 0.60% 1.00%
12:30 USD Import Price Index M/M Jun 0.30% 1.30%
14:00 USD Business Inventories May 0.20% 0.40%
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency remained under pressure after intra-day fall from 1.1197, bids at 1.1050 were filled but buy orders are still noted at 1.1030 and 1.1000, buying interest is tipped at 1.0980, 1.0960 and 1.0940, fresh demand should emerge around 1.0925, 1.0900 and 1.0880, mixture of bids and stops is located at 1.0850 barrier. On the upside, offers are lowered to 1.1075-80, 1.1100 and 1.1125, sell orders are expected at 1.1140, 1.1165 and 1.1180, selling interest is reported at 1.1200, 1.1220-25 and 1.1245, sellers are awaiting at 1.1280, 1.1300 and 1.1330.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Sell at 0.7130

As the single currency continued to meet resistance at 0.7224 and has retreated quite sharply today, suggesting top has been formed there last week and consolidation with mild downside bias is seen for test of support at 0.7055, however, a sustained breach below there is needed to signal the rebound from 0.6988 has ended, bring further fall to 0.7000-10 would be seen first.

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Trade Idea: USD/CAD - Buy at 1.2580

As the greenback has maintained a firm undertone after recent rally, suggestng recent rise is still in progress in wave iii, hence bullishness remains for the rise from 1.2128 (wave ii trough) to extend gain to 1.2800, then 1.2835, having said that, loss of near term upward momentum should prevent sharp move beyond 1.2875-80 and reckon 1.2900-10 would hold.

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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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