Wednesday, September 23, 2015

Action Insight Mid-Day Report 9-23-15

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Action Insight Market Overview Markets Snapshot

Mid-Day Report: Yen Pare Gains as Sentiments Stabilized

Yen pares back some gains as European indices strengthens despite weakness in Asia. US futures also point to a mildly higher open. Sterling is among the weakest major currencies as it's catching up with the weakness of other European majors. Aussie and Kiwi also pared back some losses as risk sentiment stabilized. Canadian is relatively steady as crude oil stays in tight range around 46.6. The Loonie is not bothered by the weaker than expected data. Canadian retail sales rose 0.5% in July, inline with consensus. But ex-auto sales was flat comparing to expectation of 0.4% growth.

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Featured Technical Report

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 119.68; (P) 120.14; (R1) 120.59; 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
00:00 AUD Conference Board Leading Index Jul 0.30% -0.20% -0.30%
01:45 CNY Caixin China PMI Mfg Sep P 47 47.8 47.3
07:00 EUR France Manufacturing PMI Sep P 50.4 49.2 48.3
07:00 EUR France Services PMI Sep P 51.2 50.9 50.6
07:30 EUR Germany Manufacturing PMI Sep P 52.5 52.8 53.3
07:30 EUR Germany Services PMI Sep P 54.3 54.5 54.9
08:00 EUR Eurozone Manufacturing PMI Sep P 52 52.2 52.3
08:00 EUR Eurozone Services PMI Sep P 54 54.1 54.4
12:30 CAD Retail Sales M/M Jul 0.50% 0.50% 0.60% 0.40%
12:30 CAD Retail Sales Less Autos M/M Jul 0.00% 0.40% 0.80% 0.50%
14:30 USD Crude Oil Inventories -1M -2.1M
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency recovered on cross-buying in euro, offers at 1.1160 were filled but sell orders are still noted at 1.1185 and 1.1200, sellers are reported at 1.1225 and 1.1245, selling interest is tipped at 1.1275 and 1.1300. On the downside, bids are seen at 1.1105-15 (stops below) and 1.1085, buy orders are expected at 1.1065 and 1.1050, buying interest should emerge around 1.1030 and 1.1000.

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Forex Trade Ideas

Trade Idea Update: USD/CHF - Buy at 0.9685

As the greenback has continued to move higher after brief pullback and broke above indicated resistance at 0.9764, adding credence to our view that correction from 0.9824 has ended at 0.9528 late last week and bullishness remains for further gain to previous resistance at 0.9797, however, break there is needed to provide confirmation that early upmove has resumed for retest of 0.9824

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Trade Idea Update: EUR/USD - Hold long entered at 1.1105

The single currency rebounded after holding above support at 1.1105 and as long as this level holds, consolidation with mild upside bias is seen for recovery to yesterday's high at 1.1208 but break there is needed to signal low has been formed, bring retracement of recent selloff to 1.1230 but price should falter well below previous support at 1.1269, bring another decline 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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