Friday, July 10, 2015

Action Insight Mid-Day Report 7-10-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Risk Appetite Continues to Return on Greek Optimism

Risk appetite continues to return on optimism that Greece would final conclude an agreement with European leaders on the bailout deal this weekend. European indices rise for another day with DAX up 2.4%, CAC up 3.3% and FTSE up 1.6% at the time of writing. US futures point to sharply higher open. Yen is steeply sold off and reversed this week's gains against Euro, Swiss Franc and New Zealand dollar. On the other hand, Euro overtook yen as the strongest major currency. Dollar is mixed, trading down against Euro, Yen, Swiss Franc and Kiwi, but up against Sterling, Canadian and Aussie.

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Featured Technical Report

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0977; (P) 1.1051 (R1) 1.1110; More....

EUR/USD's strong rebound today suggests that fall from 1.1436 is completed at 1.0915. More importantly, the development argues that price actions from 1.1466 are merely a consolidation pattern and has completed with three waves to 1.0915. And, the rebound from 1.0461 is possibly resuming. Intraday bias is back on the upside for 1.1466 first. On the downside, below 1.0915 will turn bias back to the downside for 1.0818 support instead.

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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%
01:30 AUD Home Loans May -6.10% -2.80% 1.00% 0.70%
05:00 JPY Consumer Confidence Index Jun 41.7 41.9 41.4
08:30 GBP Visible Trade Balance (GBP) May -8.0B -9.7B -8.6B
12:30 CAD Net Change in Employment Jun -6.4K -4.5K 58.9K
12:30 CAD Unemployment Rate Jun 6.80% 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

European Session: Orders and Options Watch

EUR: The single currency has rallied today and offers at 1.1070-75, 1.1090-00, 1.1120 and 1.1145-50 were filled, some sell orders are reported at 1.1180, 1.1200 and 1.1220-25, selling interest is tipped at 1.1245, 1.1280 and 1.1300, some sellers are awaiting at 1.1330 and 1.1350. On the downside, bids are raised to 1.1100-10, 1.1085 and 1.1050-60, buy orders are seen at 1.1030, 1.1000 and 1.0980, buying interest is expected at 1.0960, 1.0940 and 1.0925, fresh demand should emerge around 1.0900, 1.0880 and 1.0850 barrier (stops below). Option expires today include: 1.0920 (huge), 1.0925 (huge), 1.0940 (large), 1.1000 (large) and 1.1050.

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Forex Trade Ideas

Trade Idea: GBP/USD - Buy at 1.5425

As cable's intra-day rise has gathered momentum, suggesting a temporary low has been formed at 1.5330 earlier this week, hence consolidation with upside bias is seen for test of previous support at 1.5487, above there would encourage for a retracement of recent decline to 1.5500, then towards another previous support at 1.5532 which is likely to limit upside, bring retreat later.

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Trade Idea: EUR/USD - Buy at 1.1055

As the single currency found renewed buying interest at 1.0992 yesterday and has staged a strong rebound, suggesting a temporary low has been formed at 1.0916 earlier this week, hence consolidation with upside bias is seen for the rebound from there to bring retracement of recent decline to 1.1150-55 and possibly test of resistance at 1.1171, however, reckon upside would be limited to 1.1200 and resistance at 1.1244 should remain intact.

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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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