Wednesday, August 26, 2015

Action Insight Mid-Day Report 8-26-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Dollar Rebounds on Stabilizing Sentiments

Dollar reversed much of this week's loss as market sentiments continue to stabilize. The greenback is now trading higher against most major currencies for the week except versus yen. There is also some additional support for the greenback in early US session from economic data. Durable goods orders rose 2.0% in July while ex-transport orders rose 0.6%. That's much better than expectation of -0.4% fall and 0.4% rise respectively. The rise is headline orders was also the highest since June 2014. Meanwhile, US futures point to higher open today and DJIA may try to reclaim 16000 handle again. After all, dollar's fate will depend more on Fed vice Stanley Fischer's speech in Jackson Hole later this week.

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Featured Technical Report

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5638; (P) 1.5728; (R1) 1.5774; More...

GBP/USD's sharp fall and break of 1.5629 minor support argues that whole rebound from 1.5329 might be completed at 1.5817 already. The corrective structure suggests that fall from 1.5929 might be resuming. Intraday bias is turned back to the downside for 1.5329/5423 support zone first. Meanwhile, break of 1.5817 will turn focus back to 1.5929 resistance instead.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
22:45 NZD Trade Balance (NZD) Jul -649M -600M -60M -194M
23:50 JPY Corporate Service Price Y/Y Jul 0.60% 0.40% 0.40%
01:30 AUD Construction Work Done Q2 1.60% -1.50% -2.40% -0.80%
06:00 CHF UBS Consumption Indicator Jul 1.64 1.68 1.61
10:00 GBP CBI Reported Sales Aug 24 18 21
12:30 USD Durable Goods Orders Jul 2.00% -0.40% 3.40% 4.10%
12:30 USD Durables Ex Transportation Jul 0.60% 0.40% 0.80% 1.00%
14:30 USD Crude Oil Inventories 2.6M
Orders and Options Watch

US Session: Orders and Options Watch

GBP: Cable tumbled again in London session, bids at 1.5650-55, 1.5630-35, 1.5625, 1.5600, 1.5585 and 1.5565 were filled, however, some buy orders are still noted at 1.5550 and 1.5525-30, buying interest is tipped at 1.5000. On the upside, offers are lowered to 1.5590-00, 1.5625-30 and 1.5650-55, sell orders are expected at 1.5675-80, 1.5700 and 1.5720-25, selling interest is expected at 1.5750-60, 1.5780-85 and 1.5800.

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Forex Trade Ideas

Trade Idea Update: GBP/USD - Sell at 1.5650

Cable's intra-day selloff has gathered momentum and broke below previous support at 1.5606, adding credence to our bearish view that recent rise from 1.5425 has ended at 1.5818 and the decline from this top is still in progress for further weakness to 1.5550-55 (1.236 times projection of 1.5818-1.5682 measuring from 1.5720), then 1.5520-25, however, reckon 1.5500 would hold on first testing.

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Trade Idea Update: EUR/USD - Stand aside

The single currency has fallen again after meeting renewed selling interest at 1.1520, suggesting the decline from this week's high of 1.1714 is still in progress and downside bias remains for this fall to bring retracement of recent upmove to 1.1340-50, however, downside is likely to be limited to 1.1310-20 and reckon 1.1280-85 (61.8% Fibonacci retracement of 1.1018-1.1714) would hold from here

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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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