Monday, October 12, 2015

Action Insight Daily Report 10-13-15

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Action Insight Market Overview Markets Snapshot

Daily Report: Asian Markets Soft on China Trade Data

Asian markets opened the day mildly lower and stays soft after China trade data. Trade surplus widened to USD 60.3b in September, much larger than expectation of USD 46.9b. Exports dropped for the third consecutive months, by -3.7% yoy. Meanwhile, import dropped for the 11th straight month, by -20.4% yoy. Over the weekend, the PBoC announced fresh stimulus measures to extend the pilot program on bank lending what allowed banks to pledge assets to secure the central bank's landing. The program will be expanded from two to nine provinces including Shanghai and Beijing.

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Featured Technical Report

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2927; (P) 1.2968; (R1) 1.3037; More...

A temporary low is in place in USD/CAD at 1.2900 and intraday bias is turned neutral first. Some consolidations would be seen but we'll likely see resistance from 55 days EMA (now at 1.3098) to limit upside. Deeper decline is expected and below 1.2900 will target 1.2834 resistance turned support. As noted before, the medium term trend is possibly reversing and break of 1.2834 will affirm this bearish case and target next key support level at 1.1919. In any case, risk will now stay on the downside as long as 1.3456 resistance holds.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
CNY Trade Balance CNY Sep 60.3B 46.9B 60.2B
23:01 GBP BRC Sales Monitor Y/Y Sep 2.60% -1.00%
23:50 JPY BoJ Minutes
0:30 AUD NAB Business Confidence Sep 5 1
5:00 JPY Consumer Confidence Index Sep 41.6 41.7
6:00 JPY Machine Tool Orders Y/Y Sep P -16.50%
6:00 EUR German CPI M/M Sep F -0.20% -0.20%
6:00 EUR German CPI Y/Y Sep F 0.00% 0.00%
7:15 CHF Producer & Import Prices M/M Sep -0.10% -0.70%
7:15 CHF Producer & Import Prices Y/Y Sep -6.80%
8:30 GBP CPI M/M Sep 0.20% 0.20%
8:30 GBP CPI Y/Y Sep 0.20% 0.00%
8:30 GBP Core CPI Y/Y Sep 1.10% 1.00%
8:30 GBP RPI M/M Sep 0.10% 0.50%
8:30 GBP RPI Y/Y Sep 1.00% 1.10%
8:30 GBP PPI Input M/M Sep 0.10% -2.40%
8:30 GBP PPI Input Y/Y Sep -13.00% -13.80%
8:30 GBP PPI Output M/M Sep 0.10% -0.40%
8:30 GBP PPI Output Y/Y Sep -13.00% -1.80%
8:30 GBP PPI Output Core M/M Sep -0.10% 0.00%
8:30 GBP PPI Output Core Y/Y Sep -1.70% 0.10%
9:00 EUR German ZEW (Economic Sentiment) Oct 6 12.1
9:00 EUR German ZEW (Current Situation) Oct 66.5 67.5
9:00 EUR Eurozone ZEW (Economic Sentiment) Oct 30.1 33.3
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency eased after rising to 1.1397, offers are still noted at 1.1400 and 1.1425-30, selling interest is tipped at 1.1450 and further out at 1.1475, mixture of offers and stops is located at 1.1500. On the downside, bids are seen at 1.1355-60, 1.1330 and 1.1300, buy orders are expected at 1.1285, 1.1270 and 1.1250, buying interest should emerge around 1.1235, 1.1220 and 1.1200.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Hold short entered at 0.7400

Euro's rebound after holding above support at 0.7333 (last week's low) suggests caution on our short position entered at 0.7400 and indicated resistance at 0.7443 needs to hold to retain prospect of another retreat, below 0.7365-70 would bring another test of said support at 0.7333, once this level is penetrated, this would signal top has been formed at 0.7443 earlier, bring retracement of recent rise towards support at 0.7303

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Trade Idea: USD/CAD - Stand aside

As the greenback has recovered after holding above Friday's low at 1.2901, suggesting minor consolidation above this level would be seen and test of 1.3000-10 cannot be ruled out, however, break there is needed to signal a temporary low is possibly formed, bring a stronger rebound towards 1.3070-75, only a breach of this level would add credence to this view, bring retracement of recent reversal from 1.3457 top to 1.3100

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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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