Monday, September 21, 2015

Action Insight Mid-Day 9-21-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Dollar Extends Rebound against Euro

Dollar continues its rebound today and in particular, strength is seen against Euro. St. Louis Fed president James Bullard reiterated that it was a "close call" last week as FOMC kept interest rate unchanged. Moreover, he said that "there's a chance" for a October rate hike but " the problem with going from one meeting to the next is how much information has really changed." Meanwhile, he said that the "goals" of FOMC "have essentially been met" and even if Fed hikes, "monetary policy will still be accommodative". Meanwhile over the weekend, San Francisco Fed president John Williams said that "given the progress we've made and continue to make on our goals, I view the next appropriate step as gradually raising interest rates, most likely starting sometime later this year."

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Featured Technical Report

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1224; (P) 1.1342 (R1) 1.1414; More....

Intraday bias in EUR/USD remains neutral for the moment. With 1.1213 minor support intact, further rise is mildly in favor in the pair. Above 1.1459 will target 1.1713 resistance and above. In that case, we'd expect strong resistance from 38.2% retracement of 1.3993 to 1.0461 at 1.1810 to limit upside to complete the correction 1.0461. Meanwhile, below 1.1213 minor support will turn bias to the downside for 1.1086 support. Break will revive the case that whole rebound from 1.0461 has completed and turn near term outlook bearish.

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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%
06:00 EUR German PPI M/M Aug -0.50% -0.30% 0.00%
06:00 EUR German PPI Y/Y Aug -1.70% -1.50% -1.30%
12:30 CAD Wholesale Sales M/M Jul 0.00% 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 has dropped again after brief bounce to 1.1330, bids at 1.1280, 1.1260, 1.1245 and 1.1225 were filled but buy orders are still noted at 1.1200 and 1.1185, buying interest should emerge around 1.1165 and 1.1150. On the upside, offers are lowered to 1.1250-55, 1.1290-00 and 1.1330 (stops above), more sell orders are expected at 1.1350, 1.1380 and 1.1400, selling interest is tipped at 1.1435, 1.1450-60 (stops above) and 1.1490-00.

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Forex Trade Ideas

Trade Idea Update: USD/CHF - Buy again at 0.9650

The greenback has risen again after staging the anticipated rebound from last week's low of 0.9528, adding credence to our view that low has been formed there and consolidation with upside bias is seen for gain to 0.9725, then towards resistance at 0.9764, however, break of latter level is needed to signal the fall from 0.9824 has ended, bring further gain to 0.9797 resistance first.

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Trade Idea Update: EUR/USD - Sell at 1.1350

The single currency has fallen again after brief recovery to 1.1330, adding credence to our view that top has been formed at 1.1460 on Friday and bearishness remains for test of previous support at 1.1214, however, break there is needed to signal the rise from 1.1087 low has ended and bring further weakness to 1.1170-75 but reckon another previous support at 1.1132 would hold from here.

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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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