Thursday, September 24, 2015

Action Insight Daily Report 9-25-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Dollar Lifted as Fed Yellen Still Expects 2015 Hike

Dollar's retreat yesterday was brief as the greenback was lifted by comments from Fed chair Janet Yellen again. In short, Yellen said she still expected a 2015 liftoff in interest rate form the current near zero level. She noted that "most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter." She sounded up beat on the economy and said it's "no longer far away from full employment". However, she also acknowledged that "inflation has continued to run below the Committee's objective over the past several years, and over the past 12 months it has been essentially zero."

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Featured Technical Report

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3257; (P) 1.3337; (R1) 1.3382; More...

USD/CAD rises to as high as 1.3415 so far as the larger up trend resumes. Intraday bias remains on the upside for next long term retracement level at 1.3469. On the downside, below 1.3232 minor support will turn bias neutral first. But near term outlook will stays bullish as long as 1.3011 support holds.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:30 JPY National CPI Core Y/Y Aug -0.20% -0.10% 0.00%
23:30 JPY Tokyo CPI Core Y/Y Sep -0.20% -0.20% -0.10%
23:50 JPY Corporate Service Price Y/Y Aug 0.70% 0.50% 0.60%
8:00 EUR Eurozone M3 Y/Y Aug 5.40% 5.30%
12:30 USD GDP (Annualized) Q2 F 3.70% 3.70%
12:30 USD GDP Price Index Q2 F 2.10% 2.10%
14:00 USD U. of Michigan Confidence Sep F 87 85.7
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency has surged since European morning, offers at 1.1225, 1.1245 and 1.1275 were filled, however, sell orders are still noted at 1.1300 and 1.1330 (stops above), mixture of offers and stops is located at 1.1350, selling interest is tipped further out at 1.1390-00. On the downside, bids are raised to 1.1230-40 and 1.1210-15, more buy orders are expected at 1.1180, 1.1160-65 (stops below) and 1.1150, buyers are expected at 1.1135, 1.1120 and 1.1100-05 (stops below), buying interest should emerge around 1.1085, 1.1065 and 1.1050.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Buy at 0.7320

The single currency has surged again today and broke above indicated resistance at 0.7395, adding credence to our view that correction from last month's high of 0.7423 has ended at 0.7197 and retest of this level is underway, above there would extend the rise from 0.6936 low (wave v trough) to 0.7450-55 and later towards 0.7490-00 which is likely to hold

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Trade Idea: USD/CAD - Buy at 1.3250

Current breach of indicated previous resistance at 1.3354 confirms recent upmove has resumed in wave v and bullishness remains for further gain to 1.3450 and then towards 1.3490-00, however, near term overbought condition should prevent sharp move beyond 1.3620-30 (50% projection of 1.2128-1.3354 measuring from 1.3013), risk from there is seen for a correction to take place later.

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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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