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Mid-Day Report: Dollar Mildly Higher on Income and Spending DataDollar is generally higher today but is still bounded in range against other major currencies. Released from US, personal income rose 0.4% in June, higher than expectation of 0.3%. Personal spending rose 0.2%, inline with expectations. Headline PCE accelerated to 0.3% yoy versus expectation of 0.2% yoy. Core PCE was unchanged at 1.3% yoy, above expectation of 1.2%. Focus will turn to ISM manufacturing index to be released later in US session. A key focus is the employment component which jumped sharply to 55.5 in June, from April's low of 48.3. Performance of the employment component might provide a hint for non-farm payroll report to be released on Friday. And, Fed was clear that some further improvements in the labor market is needed before raising interest rate. | |
Featured Technical Report | |
USD/CHF Mid-Day OutlookDaily Pivots: (S1) 0.9569; (P) 0.9631; (R1) 0.9715; More.... USD/CHF recovers mildly today but stays in range below 0.9718. Intraday bias remains neutral for consolidation below 61.8% retracement of 1.0127 to 0.9072 at 0.9724. Another rise is in favor with 0.9524 support intact. Sustained break of 0.9724 will pave the way for 1.0127 resistance. However, break of 0.9524 will indicate near term topping on bearish divergence condition in 4 hours MACD. In such case, intraday bias will be turned back to the downside for 0.9150 support. |
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Orders and Options Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: Euro's retreat from 1.1114 has kept price under pressure, offers are still noted at 1.1000, 1.10200 and 1.1050, sell orders are reported at 1.1065, 1.1080-85 and 1.1100, selling interest is tipped at 1.1120, 1.1160 and 1.1185, mixture of offers and stops is located at 1.1200. On the downside, bids are seen at 1.0950, 1.0925-30 and 1.0900, buy orders are expected at 1.0880, 1.0860 and 1.0820-25, buying interest should emerge around 1.0800, 1.0780 and 1.0750 barrier (stops below). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea Update: EUR/USD - Sell at 1.1050Although the single currency staged a strong rebound after finding good support at 1.0893, as euro ran into heavy selling pressure at 1.1114 on Friday and has retreated sharply, suggesting further consolidation below last week's high of 1.1130 would be seen with mild downside bias, below support at 1.0921 would suggest the rebound from 1.0893 has ended, bring another test of this level Trade Idea Update: USD/JPY - Sell at 124.35Although dollar has rebounded after falling to 123.52 on Friday and consolidation with initial upside bias is seen for recovery to 124.20, reckon resistance at 124.38 should limit upside and bring retreat later, below said support at 123.52 would extend weakness to 123.33 but break there is needed to signal top has been formed at 124.58 last week, bring another test of last week's low at 123.01 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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