Monday, August 31, 2015

Action Insight Mid-Day Report 8-31-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Forex Markets Steady, Heavy Weight Events in Coming Asian Session

The forex markets are generally staying in tight range today even though some extra weakness is seen in Aussie and Kiwi. Traders are cautious ahead of a bunch of key economic data from US to be released later this week. That include ISM indices as well as non-farm payroll. Dollar was supported by slightly more hawkish than expected but there is no follow through buying so far. There are talks that Fed will stand pat in September even in case of strong data this week as it needs more time to assess the development of recent market turmoils. Nonetheless, the August job data would still be crucial for Fed to decide whether to hike in October.

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Featured Technical Report

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5341; (P) 1.5391; (R1) 1.5449; More...

With 1.5508 minor resistance intact, further decline is expected in GBP/USD. Recent development suggests that corrective pattern from 1.5329 has completed with three waves up to 1.5817. Break of 1.5329 support will resume the fall from 1.5929 and target 100% projection of 1.5929 to 1.5329 from 1.5817 at 1.5217. Break will target 161.8% projection at 1.4846. On the upside, above 1.5508 minor resistance will turn bias neutral first. But risk will stay on the downside as long as 1.5817 resistance holds.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
22:45 NZD Building Permits M/M Jul 20.40% -4.10% -3.30%
23:50 JPY Industrial Production M/M JUl P -0.60% 0.10% 1.10%
00:30 AUD TD Securities Inflation M/M Aug 0.10% 0.20%
01:00 NZD NBNZ Business Confidence Aug -29.1 -15.3
05:00 JPY Housing Starts Y/Y Jul 7.40% 11.00% 16.30%
06:00 EUR German Retail Sales M/M Jul 1.40% 1.30% -2.30%
07:00 CHF KOF Leading Indicator Aug 100.7 100.3 99.8 100.4
09:00 EUR Eurozone CPI Estimate Y/Y Aug 0.20% 0.10% 0.20%
09:00 EUR Eurozone CPI - Core Y/Y Aug A 1.00% 0.90% 1.00%
12:30 CAD Current Account (CAD) Q2 -17.4B -$17.00B -$17.50B -18.1B
13:45 USD Chicago PMI Aug 54.4 54.7 54.7
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency traded narrowly and further consolidation is in store, buy orders are still noted at 1.1180 and 1.1160 with stops placed below 1.1150, buying interest is tipped further out at 1.1100-10 (stops below barrier at 1.1100). On the upside, offers are now seen at 1.1260-65 and 1.1280, more sell orders are reported at 1.1300-10, 1.1325 and 1.1360 (sizeable), selling interest should emerge around 1.1395-00 (stops above).

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Forex Trade Ideas

Trade Idea Update: GBP/USD - Buy at 1.5370

Although the British pound fell again to as low as 1.5335 on Friday, the subsequent rebound suggests consolidation above this level would be seen and above resistance at 1.5443 would suggests low has possibly been formed there, bring retracement of recent decline to 1.5480-85 (38.2% Fibonacci retracement of 1.5720-1.5335) but reckon resistance at 1.5509 would limit upside, bring another decline

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Trade Idea Update: EUR/USD - Buy at 1.1190

Although the single currency has retreated after faltering below the lower Kumo and minor consolidation would be seen with initial downside risk, as long as Friday's low at 1.1156 holds, prospect of another rebound remains, above 1.1260-65 would bring retracement of last week's selloff to 1.1310 (Friday's high and 38.2% Fibonacci retracement of 1.1562-1.1156), however, reckon 1.1359-64 (50% Fibonacci retracement and another previous resistance) would limit upside

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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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