Monday, August 10, 2015

Action Insight Mid-Day Report 8-10-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Dollar Mildly Lower on Fed Vice Fischer

Dollar weakens mildly in early US session on dovish comments from Fed vice chair Stanley Fischer. Fischer noted that he'd prefer to see inflation returning to more normal level before hiking interest rates. Nonetheless, he also said that a "large part" of the current very low inflation is "temporary" due to oil and commodity prices. Meanwhile, US is now in a situation with "nearly full employment but very low inflation". Dollar continues to trade mixed against other major currencies, losing ground against Sterling and Canadian dollar but is trading up against others.

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Featured Technical Report

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0883; (P) 1.0931 (R1) 1.1006; More....

Intraday bias in EUR/USD remains neutral for the moment. On the downside, break of 1.0807 will extend recent fall from 1.1436. Nonetheless, the corrective structure of price actions from 1.1466 so far argues that it's possibly just a leg inside the consolidation pattern from 1.0461. Hence, in that case, we'd be cautious on strong support above 1.0461 to bring reversal. Meanwhile, break of 1.1128 resistance will bring stronger rise back to 1.1436/66 resistance zone.

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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

US Session: Orders and Options Watch

EUR: Euro recovered after finding support at 1.0925, however, offers are still noted at 1.0985, 1.1000 and 1.1020, more sell orders are reported at 1.1050, 1.1065 and 1.1080-85, selling interest is tipped further out at 1.1100, 1.1125 and 1.1150. On the downside, bids remain at 1.0925, 1.0900 and 1.0880, buy orders are expected at 1.0850, 1.0820-25 and 1.0800, buying interest should emerge around 1.0780 and 1.0750 (barrier).

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Forex Trade Ideas

Trade Idea: AUD/USD - Hold long entered at 0.7340

As aussie has retreated after meeting resistance at 0.7420, suggesting further consolidation would be seen and pullback to 0.7330-40 cannot be ruled out, however, as long as support at 0.7315 holds, near term bullishness remains for another rebound to said resistance at 0.7420 but break of said resistance at 0.7449 is needed to provide confirmation that low has been formed at 0.7235, bring retracement of recent decline to another previous resistance at 0.7489

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Trade Idea: EUR/JPY - Stand aside

Despite Friday's brief drop to 135.56, as the single currency has rebounded again after finding renewed buying interest there, retaining our view that further choppy trading within recent range would be seen and gain to 137.00 cannot b ruled out but reckon resistance at 137.35 would lmit upside and price should falter well below resistance at 137.80, bring retreat 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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