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Daily Report: Markets Mildly Lower on Weak China DataAsian markets open mildly lower in response to a weak batch of data from China released during the weekend. But weakness in stocks is limited as markets main focus is on FOMC rate decision later this week. At this time of writing, Nikkei is trading down -90 pts or -0.5% while China SSE composite is down -44 pts, or -1.4%. China industrial production rose 6.1% in yoy in August, below expectation of 6.5% yoy. Fixed asset investment rose 10.9% ytd, below expectation of 11.2% and was the lowest pace in 15 years. On the other hand, retail sales rose 10.8% yoy, beating expectation of 10.6%. Investors are calm in response to the data as the government is expected to roll out more stimulus ahead to prevent a hard landing. | |
Featured Technical Report | |
USD/CHF Daily OutlookDaily Pivots: (S1) 0.9645; (P) 0.9720; (R1) 0.9759; More.... The rebound from 0.9256 could have completed at 0.9823 already. Intraday bias is mildly on the downside for 0.9256 support. Overall, USD/CHF is bounded by recent sideway consolidation pattern, which might be a triangle pattern. We'd expect strong support above 0.9256 to contain downside to bring rebound. We'd expect range trading to continue for a while before an eventual breakout. |
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Orders and Options Watch | ||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: The single currency met selling interest just above 1.1300 and retreated in European session and bids at 1.1265-70 were filled, however, buy orders are still noted at 1.1250 and 1.1225, buyers are expected at 1.1200 and 1.1175-80, buying interest should emerge around 1.1160 and 1.1140-45. On the upside, offers are seen at 1.1300, 1.1320 and 1.1335, sell orders are reported at 1.1350 and 1.1390-00, selling interest is tipped at 1.1420 and 1.1450. | ||||||||||||||||||||||||||||||||||||||||||
Forex Trade Ideas | ||||||||||||||||||||||||||||||||||||||||||
Trade Idea: USD/CAD - Hold long entered at 1.3210The greenback is expected to remain confined within recent established range and expect downside to be limited to 1.3200 and bring another rebound, above resistance at 1.3325-27 would signal the correction from 1.3354 has ended, bring retest of this recent high. Once this level is penetrated, this would extend recent upmove to 1.3390-00, however, this minor wave v of iii should be limited to 1.3440-50 Trade Idea: EUR/JPY - Buy at 135.00The single currency has continued to move higher after staging a strong rebound from 132.23, suggesting the wave c as well as larger degree wave b has ended there last week, hence consolidation with upside bias remains for further gain to 137.00-10, then test of 137.60-65, however, a daily close above there is needed to retain bullishness and extend gain to 138.00-10 later. Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | ||||||||||||||||||||||||||||||||||||||||||
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Fundamental Highlights
Technical Highlights |
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