Monday, July 13, 2015

Action Insight Mid-Day Report 7-13-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Euro Mildly Softer Despite Greek Deal with Creditors

Euro is mildly softer today in spite of positive news from Greece. After 22 hours of meeting, an agreement was finally reached between Greece and Eurozone leaders on the third bailout that is worth up to EUR 86b. Greece will now need to pass through parliament by Wednesday to confirm the implementation of the reforms to secure the financial aid. The reforms include pension overhauls, sales tax hike, measures to wind down broken banks. Meanwhile ECB will hold a teleconference today to discuss the Emergency Liquidity Assistance for Greek banks. ECB might keep the limit of ELA unchanged for now and wait for parliament approval of the reforms on Wednesday. While Euro softens, European indices are generally higher with DAX yo 1,3%m CAC up 2.09% and FTSE up 0.8% at the time of writing.

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Featured Technical Report

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 121.72; (P) 122.30; (R1) 123.32; More...

USD/JPY's rebound from 120.40 extends higher today and intraday bias remains on the upside for 124.43 resistance As noted before, pull back from 125.85 should have completed at 120.40. The corrective structure argues that larger up trend is not completed. Break of 124.43 should target 125.85 high and above. Meanwhile, below 122.30 minor support will turn focus back to 120.40 support instead.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
2:45 CNY Trade Balance Jun $46.61B $56.35B $59.49B
4:30 JPY Industrial Production M/M May F -2.10% -2.10% -2.20%
4:30 JPY Tertiary Industry Index M/M May -0.70% -0.20% -0.20%
18:00 USD Monthly Budget Statement Jun 40.5B -82.4B
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 Update: USD/JPY - Buy at 122.50

The greenback has surged again after finding renewed buying interest at 122.18, suggesting the rise from 120.41 low is still in progress and bullishness remains for further gain to 123.50, then test of previous resistance at 123.74, however, break of latter level is needed to signal recent entire fall from 125.86 top has ended at 120.41, bring headway to 123.99 and later towards 124.38 which is likely to hold

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Trade Idea Update: USD/CHF - Buy at 0.9420

Although the greenback retreated quite sharply to 0.9330 late last week, as dollar found renewed buying interest there and has staged a strong rebound, suggesting consolidation with upside bias is seen for another test of last week's high of 0.9516, break there would extend the erratic rise from 0.9072 to 0.9543 resistance, above there would provide confirmation, bring headway to 0.9570-80 later.

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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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