Friday, September 11, 2015

Action Insight Mid-Day Report 9-11-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Sterling Firm ahead of Weekly Close

Sterling remains the second strongest major currency this week, next to Aussie, ahead of close. In UK, BoE said in the August Inflation Attitudes Survey that 50% of respondents expected interest rate to rise from current record low 0.5% by next August. That compared to 38% back in May. Meanwhile, 26% expected the benchmark interest rate to stay unchanged while 20% were unsure. The rest expected a cut in interest rates. However the survey also showed lower inflation expectations. For the coming year, it's expected inflation to be 2% and 2.3% for two years ahead. .

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Featured Technical Report

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5362; (P) 1.5419; (R1) 1.5499; More...

Intraday bias in GBP/USD remains on the upside for the moment. Corrective fall from 1.5929 should have completed at 1.5164 already. Further rise would now be seen to 1.5817 resistance first. The rise from 1.4565 might extend through 1.5929. But in that case, we'd expect strong resistance from 61.8% retracement of 1.7190 to 1.4565 at 1.6187 to limit upside. On the downside, below 1.5338 will turn focus back to 1.5164 support instead.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
22:30 NZD Business NZ Manufacturing Index Aug 55 53.5 53.7
23:50 JPY BSI Large Manufacturing Q3 11 -1.9 -6
06:00 EUR German CPI M/M Aug F 0.00% 0.00% 0.00%
06:00 EUR German CPI Y/Y Aug F 0.20% 0.20% 0.20%
12:30 USD PPI M/M Aug 0.00% -0.10% 0.20%
12:30 USD PPI Y/Y Aug -0.80% -0.90% -0.80%
12:30 USD PPI Core M/M Aug 0.30% 0.10% 0.30%
12:30 USD PPI Core Y/Y Aug 0.90% 0.70% 0.60%
14:00 USD U. of Michigan Confidence Sep P 92 91.9
Orders and Options Watch

US Session: Orders and Options Watch

EUR: 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.

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Forex Trade Ideas

Trade Idea Update: USD/CHF - Hold long entered at 0.9705

The greenback did find renewed buying interest just above support at 0.9700 and has staged a strong rebound, retaining our bullishness and above 0.9800-05 would signal the correction from this week's high of 0.9824 has ended at 0.9702 yesterday, bring retest of this level, once this resistance is penetrated, this would signal recent rise from 0.9259 has resumed and extend gain to 0.9835

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Trade Idea Update: GBP/USD - Buy at 1.5355

As cable has retreated after rising to 1.5476 yesterday, minor consolidation below this level would be seen and test of 1.5400 is likely, however, reckon the Ichimoku cloud (now at 1.5363-67) would limit downside and 1.5345-55 would hold, bring another rise later. Above said resistance at 1.5476 would extend the rise from 1.5164 low to 1.5491-93

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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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