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Daily Report: NFP Takes the Stage From Dovish ECBThe dovish ECB press conference yesterday weakened the Euro as well as other European majors and set the stage for a dollar rally. The torch is now passed to employment report from US today. Non-farm payroll is expected to show 220k growth in the job market in August. Unemployment rate is expected to drop to 5.2%. Average hourly earnings are expected to grow 0.2%. The pre-NFP employment data pointed to downside risk in today's release. The ADP employment report showed 190k private sector job growth in August, missing expectation of 200k. 4 week moving average of initial claims rose from 268k to 276k in the past month. Employment component of ISM manufacturing dropped from 52.7 to 51.2, hitting the lowest level since April. Employment component of ISM non-manufacturing dropped from 59.6 to 56.0. Nonetheless, Conference Board consumer confidence improved sharply from 91.0 to 101.5 and hit the highest level since January. | |
Featured Technical Report | |
AUD/USD Daily OutlookDaily Pivots: (S1) 0.6984; (P) 0.7023; (R1) 0.7055; More... AUD/USD's fall continues today and reaches as low as 0.6958 so far and intraday bias remains on the downside. Sustained trading below 61.8% projection of 0.9504 to 0.7625 from 0.8161 at 0.7000 will pave the way to 100% projection at 0.6282. On the upside, above 0.7061 minor resistance will turn bias neutral and bring consolidations. But outlook will stay bearish as long as 0.7458 resistance holds and further fall is expected. |
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: The single currency dropped again in NY morning in part due to upbeat US data, bids at 1.1200, 1.1180, 1.1160 and 1.1120-30 were filled, mixture of bids and stops at 1.1100 barrier is in focus, some buy orders are scattered around 1.1050-60 and 1.1020-25, buying interest is tipped at 1.0990-00 (stops below 1.0980). On the upside, offers are now seen at 1.1150-55 and 1.1190-00, sell orders are expected at 1.1220 and 1.1240-50 (stops above), selling interest should emerge around 1.1280 and 1.1300 with stops building up above 1.1335-40. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea: EUR/GBP - Hold long entered at 0.7300As the single currency has retreated quite sharply after meeting resistance at 0.7340 today, dampening our bullishness and minor support at 0.7262 needs to hold to retain prospect of another rebound, above 0.7340 would bring test of 0.7395 but break there is needed to signal upmove has resumed for retest of 0.7423. Looking ahead, only break of this last week's high would confirm recent upmove has resumed Trade Idea: USD/CAD - Stand asideDespite yesterday's rebound to 1.3325, as the greenback has retreated again after faltering below indicated resistance at 1.3327 (Monday's high), retaining our view that further consolidation below last week's high of 1.3354 would be seen and below support at 1.3117 would bring retracement of recent upmove to 1.3050-60, having said that, reckon 1.3000 would contain weakness and price should stay well above 1.2952 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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