Wednesday, July 1, 2015

Action Insight Mid-Day Report 7-1-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Stocks Rebound as Greece Made Concession, Dollar Firm on ADP Job

Stocks markets stage a strong rebound today on news that Greece made concessions in the negotiation with the international creditors. At the time of writing, DAX and CAC are both trading up more than 2.4% and FTSE is up 1.4%. US futures also point to sharply higher open. It's reported that Greek prime minister Alexis Tsipras sent a letter overnight to EC president Jean Claude Juncker, ECB president Mario Draghi and IMF head Christine Lagarde. The letter stated that Tsipras is ready to accept most conditions on the table last week before the talk collapsed and he called a referendum. There were amendments on six areas including VAT reform, fiscal structure measures, pensions, labor markets and product markets. Nonetheless, it's reported that Germany has stated it clear that no agreement could be made before the referendum in Greece this Sunday on July 5.

Full Report Here...


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Featured Technical Report

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 122.04; (P) 122.38; (R1) 122.83; More...

A temporary low is in place in USD/JPY at 121.93 and intraday bias is turned neutral. Fall from 125.85 is viewed as a correction and might have completed. Focus is back on 124.43 resistance. Break will suggest that the larger up trend might be resuming and would target a test on 125.85 first. Nonetheless, below 121.93 will extend the fall correction to 61.8% retracement of 118.88 to 125.85 at 121.54.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:50 JPY Tankan Large Manufacturers Index Q2 15 12 12
23:50 JPY Tankan Non-Manufacturing Index Q2 23 22 19
01:00 CNY Manufacturing PMI Jun 50.2 50.4 50.2
01:00 CNY Non-manufacturing PMI Jun 53.8 53.2
01:30 AUD Building Approvals M/M May 2.40% 1.30% -4.40% -5.20%
01:35 JPY Manufacturing PMI Jun F 50.1 49.9 49.9
01:45 CNY HSBC Manufacturing PMI Jun F 49.4 49.6 49.6
07:30 CHF SVME-PMI Jun 50 50.2 49.4
07:45 EUR Italy Manufacturing PMI Jun 54.1 55.2 54.8
07:50 EUR France Manufacturing PMI Jun F 50.7 50.5 50.5
07:55 EUR Germany Manufacturing PMI Jun F 51.9 51.9 51.9
08:00 EUR Eurozone Manufacturing PMI Jun F 52.5 52.5 52.5
08:30 GBP PMI Manufacturing Jun 51.4 52.4 52 51.9
11:30 USD Challenger Job Cuts Y/Y Jun 42.70% -22.50%
12:15 USD ADP Employment Change Jun 237K 211K 201K 203K
14:00 USD Construction Spending M/M May 0.80% 0.50% 2.20%
14:00 USD ISM Manufacturing Jun 53.5 53 52.8
14:00 USD ISM Prices Paid Jun 49.5 51.3 49.5
14:30 USD Crude Oil Inventories -4.9M
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency ran into renewed selling interest at 1.1171 and has fallen again, bids at 1.1100 and 1.1080 were filled but buy orders are still noted at 1.1050 and 1.1030, buying interest is tipped at 1.1000 and 1.0980, fresh demand should emerge around 1.0960, 1.0930 and 1.0900. On the upside, offers are now seen at 1.1120-30, 1.1150 and 1.1170 (stops above 1.1175-80), sell orders are reported at 1.1200 and 1.1220-25, sellers are located at 1.1245 and 1.1280, selling interest is expected 1.1300, 1.1330 and 1.1350.

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Forex Trade Ideas

Trade Idea Update: EUR/USD - Target met and stand aside

The single currency has fallen again after meeting renewed selling interest at 1.1171 earlier today, justifying our bearish view and our short position entered at 1.1170 reached indicated downside target at 1.1070, this anticipated decline add credence to our view that top has been formed at 1.1278 and consolidation with downside bias remains for weakness to 1.1050, however, below 1.1030-35 is needed to signal the rebound from 1.0954 (Monday's low) has ended

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Trade Idea Update: GBP/USD - Sell at 1.5700

As cable has fallen again after meeting renewed selling interest at 1.5732 and price just broke below support at 1.5664, suggesting recent fall from 1.5930 is still in progress and may extend weakness to 1.5615-20 (61.8% Fibonacci retracement of 1.5422-1.5930), then 1.5595-00 but price should stay well above support at 1.5542 due to near term oversold condition.

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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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