Sunday, September 20, 2015

Action Insight Daily Report 9-21-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Asian Markets Lower on Growth Concerns

Asian markets opened the week lower as concern over global slow down. While Japan is on holiday today, other Asian indices are generally lower. Crude oil stays soft below 45 after Friday's dip and gold is trading in tight range below 1140. Dollar index is trading above 95 with an eye on 95.84 minor resistance. In the currency markets, commodity currencies are revering some of last week's gain. Meanwhile, yen is lifted mildly by risk aversion, followed by Euro. Dollar is mixed. Released so far today, New Zealand Westpac consumer confidence dropped to 106 in Q3. UK Rightmove house price rose 0.9% mom in September. Looking ahead, Germany will release PPI. Canada will release wholesale sales and US will release existing home sales.

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Featured Technical Report

USD/JPY Daily Outlook

Daily Pivots: (S1) 119.20; (P) 119.81; (R1) 120.56; More...

USD/JPY is staying in range of 118.58/121.62 and intraday bias remains neutral for the moment. On the upside, break of 121.62 will extend the rebound from 116.13 and target 125.27/85 resistance zone. We'd cautious on strong resistance from there to bring reversal. On the downside, break of 118.58 will turn focus back to 116.13 support instead.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
22:00 NZD Westpac Consumer Confidence Q3 106 113
23:01 GBP Rightmove House Prices M/M Y Sep 0.90% -0.80%
6:00 EUR German PPI M/M Aug -0.30% 0.00%
6:00 EUR German PPI Y/Y Aug -1.50% -1.30%
12:30 CAD Wholesale Sales M/M Jul 0.30% 1.30%
14:00 USD Existing Home Sales Aug 5.50M 5.59M
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency eased after rising to 1.1460 in European session, sell orders are still noted at 1.1460-65, 1.1480-85 and 1.1500, selling interest is tipped at 1.1520 and 1.1550. On the downside, bids are seen at 1.1395-00 (stops below 1.1390) and 1.1380, more buy orders are expected at 1.1350 and 1.1330, buying interest should emerge around 1.1300, 1.1285 and 1.1260, mixture of bids and stops is located at 1.1240-50.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Hold long entered at 0.7300

Euro has retreated again after meeting resistance at 0.7341, suggesting further consolidation would be seen, however, as long as 0.7266 holds, upside bias remains for another rebound, above said resistance would bring test of 0.7361, break there would encourage for gain to resistance at 0.7395 but a breach there is needed to signal the correction from 0.7423 (last month's high) has ended, bring further gain to this level. Having said that, only break there would confirm upmove has resumed for headway to 0.7450, then towards 0.7475-80.

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Trade Idea: USD/CAD - Sell at 1.3150

Current selloff signals wave iii top has been formed earlier at 1.3354 and consolidation with downside bias is seen for wave iv correction to take place, below 1.3000 would extend weakness to previous support at 1.2952 and possibly towards 1.2885-90 (38.2% Fibonacci retracement of entire wave iii from 1.2128-1.3354) which is likely to limit downside and support at 1.2862 should remain intact.

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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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