Thursday, July 9, 2015

Action Insight Mid-Day Report 7-9-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Global Equities Rebounded, Yen Pared Gains

The global stock markets staged a strong rebound today following China. At the time of writing, DAX and CAC are up more than 2% while FTSE is up 1.3%. US equities also point to higher open. In the currency markets, Yen pared some some of the risk aversion triggered against but remains the strongest major currency for the week so far. Released from US, initial jobless claims rose to 297k in the week ended July 4, above expectation of 277k. Canada new housing price index rose 0.2% mom in May while housing starts rose to 203k in June.

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Featured Technical Report

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1003; (P) 1.1047 (R1) 1.1121; More....

With 1.1120 minor resistance intact, further decline is still expected in EUR/USD. At this point, we're favoring the case that corrective rebound from 1.0461 has completed at 1.1466 already. Deeper decline is expected and break of 1.0818 will confirm this case and pave the way for a test on 1.0461 low. On the upside, above 1.1120 minor resistance will turn intraday bias back to the upside for 1.1436/1466 resistance zone.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:01 GBP RICS House Price Balance Jun 40% 37% 34%
23:50 JPY Machine Orders M/M May 0.60% -4.60% 3.80%
23:50 JPY Japan Money Stock M2+CD Y/Y Jun 3.80% 4.00% 4.00% 4.10%
01:30 CNY CPI Y/Y Jun 1.40% 1.40% 1.20%
01:30 CNY PPI Y/Y Jun -4.80% -4.60% -4.60%
01:30 AUD Employment Change Jun 7.3K 0.1K 42.0K 40.0K
01:30 AUD Unemployment Rate Jun 6.00% 6.10% 6.00% 5.90%
06:00 JPY Machine Tool Orders Y/Y (JUN P) 6.60% 15.00%
06:00 EUR German Trade Balance (EUR) May 22.8B 20.6B 22.3B 21.5B
11:00 GBP BoE Rate Decision 0.50% 0.50% 0.50%
11:00 GBP BoE Asset Purchase Target 375B 375B 375B
12:15 CAD Housing Starts Jun 203K 191K 201.7K 197K
12:30 CAD New Housing Price Index M/M May 0.20% 0.20% 0.10%
12:30 USD Initial Jobless Claims (JUL 4) 297K 277K 281K 282K
14:30 USD Natural Gas Storage 86B 69B
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency retreated after intra-day brief rise to 1.1125 but buy orders are still noted at 1.1020 and 1.1000-05, buying interest is tipped at 1.0970-75 and 1.0940-50, mixture of bids and stops is located at 1.0910-20, fresh demand should emerge around 1.0900, 1.0880, 1.0850 barrier and 1.0825. On the upside, offers are seen at 1.1070-75, 1.1090-00 (stops above) and 1.1120, selling interest should emerge around 1.1145-50, 1.1180 and 1.1200, sellers are awaiting at 1.1220-25 and 1.1245-50.

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Forex Trade Ideas

Trade Idea Update: GBP/USD - Sell at 1.5470

As the British pound has rebounded after falling to 1.5330 yesterday, suggesting consolidation above this level would be seen and near term upside risk remains for retracement of recent decline to 1.5450, however, reckon resistance at 1.5487 would limit upside and bring another decline, below 1.5350 would signal the rebound from 1.5330 has ended, bring retest of this yesterday's low, break there would extend the decline from 1.5930 top to 1.5300

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Trade Idea Update: USD/JPY - Sell at 121.85

Dollar found good support at 120.41 on cross-unwinding in yen due to risk appetite, suggesting consolidation above this level would be seen, however, reckon upside would be limited to 121.70 and bring another decline later, below 120.75-80 would signal the rebound from 120.41 has ended, bring retest of this level, break there would extend recent decline from 125.86 top to 120.20 and possibly towards psychological support at 120.00

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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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