Sunday, July 5, 2015

Action Insight Daily Report 7-6-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Markets Rocked on Overwhelming No in Greece, Euro Weakness Limited

The financial markets are hit hard by the Greek vote as the week opened. Nikkei is trading down over -300 pts, or -1.5% at the time of writing while HK HSI is down -800 pts or -3% at the time of writing. Euro gapped down the week to as low as -1.0958 against dollar but recovered ahead of last week's low of 1.0954. EUR/JPY also dived to as low as 133.85 but recovered ahead of last week's low 133.77. Yen was strong against other major currencies on risk average but there is no follow through buying. Indeed, yen retreats after failing to take out last week's high against other majors.

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Featured Technical Report

EUR/JPY Daily Outlook

Daily Pivots: (S1) 135.98; (P) 136.41; (R1) 136.92; More...

EUR/JPY opens sharply lower this week but stayed above 133.77 minor support and recovered. Intraday bias remains neutral for the moment first. Overall, we'd favoring the case the rebound from 126.09 has completed at 141.04 already, after hitting 61.8% retracement of 149.76 to 126.09. Thus, deeper fall is expected. Break of 133.77 will confirm this bearish case and target a test on 126.09 low. However, break of 141.04 will extend the rebound from 126.09 towards 149.76.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
0:30 AUD TD Securities Inflation M/M Jun 0.10% 0.30%
5:00 JPY Leading Index May P 106.2 106.4
6:00 EUR German Factory Orders M/M May 0.00% 1.40%
7:15 CHF CPI M/M Jun -0.10% 0.20%
7:15 CHF CPI Y/Y Jun 1.20% -1.20%
8:10 EUR Eurozone Retail PMI Jun 51.4
8:30 EUR Eurozone Sentix Investor Confidence Jul 15.6 17.1
14:00 CAD Ivey PMI Jun 56.2 62.3
14:00 USD ISM Non-Manufacturing Composite Jun 56 55.7
14:30 CAD BOC Business Outlook Survey
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency found support around 1.1050 and has recovered again, offers at 1.1120 were filled but sell orders are expected at 1.1145-50 and 1.1170 (stops above 1.1175-80), sellers are tipped at 1.1200, 1.1220-25 and 1.1245, selling interest should emerge around 1.1280 and 1.1300. On the downside, bids are seen at 1.1075-80, 1.1050 and 1.1030 (stops below), more buy orders are reported at 1.1000, 1.0980 and 1.0960, fresh demand should emerge at 1.0930 and 1.0900.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Sell at 0.7210

Euro's near term sideyways trading is likely to continue and above 0.7129-30 would bring another test of resistance at 0.8168, break there would bring retracement of recent decline to 0.7190-00 but renewed selling interest should emerge around resistance at 0.7211, bring another decline later. Below 0.7060-65 would bring retest of support at 0.6988 but break there is needed to signal recent decline has resumed in wave v

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Trade Idea: USD/CAD - Buy at 1.2470

As the greenback has maintained a firm undertone after surging to 1.2633 yesterday, suggesting bullishness remains for recent upmove from 1.1920 (wave c and probably entire wave iv) to extend further gain in wave iii to 1.2665-70, then 1.2700.

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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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