Monday, August 10, 2015

Action Insight Daily Report 8-10-15

ActionForex.com
Action Insight Market Overview Markets Snapshot

Daily Report: Dollar Mixed as Markets Await FedSpeaks

Dollar continues to trade in mixed mode today, weakening mildly against euro and swiss franc but strengthened against others. We'd maintain that markets reactions showed traders are not too convinced of a rate hike by Fed in September. More evidence is still needed to push the dollar higher. A few important economic data will be released later this week. But the more market moving event is possibly the speech by Fed vice chair Stanley Fischer today. Another major focus is developments in US equities. DJIA closed below 55 weeks EMA last week which is taken as another sign of weakness. We repeatedly mentioned the risk of medium term trend reversal in DJIA for some time, pointing to bearish divergence condition in weekly MACD. But no sustainable selling was seen yet. We'll keep an eye on whether the reversal has finally arrived.

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Featured Technical Report

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3060; (P) 1.3121; (R1) 1.3196; More...

Intraday bias in USD/CAD remains neutral for consolidation below 1.3213. Further rise is still expected as long as 1.2859 support holds. Above 1.3213 will target next projection level at 1.3287. Meanwhile, break of 1.2859 will confirm near term topping with bearish divergence condition in 4 hours MACD. In such case, deeper pull back would be seen.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:50 JPY Current Account (JPY) Jun 1.30T 1.41T 1.64T
5:00 JPY BOJ Monthly Report
5:00 JPY Consumer Confidence Jul 40.3 42.2 41.7
6:00 JPY Eco Watchers Survey: Current Jul 51.6 53.1 51
8:30 EUR Sentix Investor Confidence Aug 18.4 20.2 18.5
Orders and Options Watch

European Session: Orders and Options Watch

CHF: The greenback has maintained a firm undertone after rising to 0.9848 yesterday, however, offers are still noted at 0.9850-60 and 0.9885, selling interest is tipped further out at 0.9900, 0.9930 and 0.9950. On the downside, bids are raised to 0.9800 and 0.9775, buy orders are reported at 0.9740-50 and 0.9720, buying interest is expected at 0.9700-05 and 0.9680, fresh demand should emerge around 0.9660-65 and 0.9640-45 (stops below).

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Forex Trade Ideas

Trade Idea: GBP/USD - Sell at 1.5545

As the British pound has rebounded after Friday's selloff to 1.5425, suggesting consolidation above this level would be seen and test of the lower Kumo (now at 1.5529) cannot be ruled out, however, reckon 1.5545-50 would limit upside and bring another decline later, below 1.5450 would bring retest of said support but break there is needed to signal the decline from 1.5690 top has resumed and extend weakness to 1.5400 and later towards 1.5370-75.

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Trade Idea : USD/CHF - Buy at 0.9770

As the greenback has retreated after Friday's brief rise to 0.9884, retaining our view that minor consolidation below this level would be seen and pullback to 0.9793 (Friday's low as well as 38.2% Fibonacci retracement of 0.9644-0.9884) cannot be ruled out but reckon support at 0.9760-68 would limit downside and bring another rise later, above said resistance at 0.9884 would extend recent upmove to 0.9895-00 (50% projection of 0.9644-0.9848 measuring from 0.9793) and then 0.9920-25

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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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