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Daily Report: Dollar Mixed as Markets Await FedSpeaksDollar 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. | |
Featured Technical Report | |
USD/CAD Daily OutlookDaily 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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Orders and Options Watch | ||||||||||||||||||||||||||||||||||||||||||
European Session: Orders and Options WatchCHF: 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). | ||||||||||||||||||||||||||||||||||||||||||
Forex Trade Ideas | ||||||||||||||||||||||||||||||||||||||||||
Trade Idea: GBP/USD - Sell at 1.5545As 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. Trade Idea : USD/CHF - Buy at 0.9770As 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 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | ||||||||||||||||||||||||||||||||||||||||||
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