Thursday, October 8, 2015

Action Insight Daily Report 10-9-15

ActionForex.com
Action Insight Market Overview Markets Snapshot

Daily Report: Dollar Remains Soft after FOMC Minutes

Dollar stays soft as the markets perceived the tone of the FOMC minutes released overnight pointed to risk of further delay in rate hike. In particular, the minutes noted that "participants anticipated that the recent global developments would likely put further downward pressure on inflation in the near term." And, "compared with their previous forecasts, more now saw the risks to inflation as tilted to the downside." Though, some policy makers remained optimistic that "eliminating slack along such broader dimensions might require a temporary decline in the unemployment rate below its longer-run normal level, and that this development could speed the return of inflation to 2 percent."

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Featured Technical Report

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2971; (P) 1.3022; (R1) 1.3066; More...

With 1.3133 minor resistance intact, deeper decline will be seen in USD/CAD. As noted before, prior break of 1.3011 support indicates that a medium term top is possibly in place at 1.3456. That's supported by strong resistance from a long term retracement level at 1.3469 and there is bearish divergence condition in daily MACD. Further fall should be seen to 1.2834 resistance turned support first. Decisive break there will target next key support level at 1.1919. On the upside, above 1.3133 will bring recovery but upside should be limited well below 1.3456 resistance and bring fall resumption.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
00:30 AUD Home Loans Aug 2.9% 5.10% 0.30% -0.3%
08:30 GBP Visible Trade Balance (GBP) Aug -10.0B -11.1B
12:30 CAD Net Change in Employment Sep 10K 12.0k
12:30 CAD Unemployment Rate Sep 6.90% 7.00%
12:30 USD Import Price Index M/M Sep -0.50% -1.80%
14:00 USD Wholesale Inventories Aug 0.00% -0.10%
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency has retreated after intra-day brief bounce to 1.1315, bids at 1.1270 and 1.1250 were filled but buy orders are still noted at 1.1235, 1.1220 and 1.1200, buying interest should emerge around 1.1180-85, 1.1155-60 and 1.1125-35, mixture of bids and stops is located at 1.1100. On the upside, offers are now seen at 1.1280, 1.1315-20 (stops above) and 1.1350, sell orders are reported at 1.1365 and 1.1380, selling interest is tipped at 1.1400 and 1.1430, sellers are awaiting at 1.1450, 1.1475 and 1.1500.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Sell at 0.7395

Although the single currency has recovered after finding support at 0.7333 yesterday and consolidation would be seen, if our view that top has been formed at 0.7443 last week is correct, upside should be limited to 0.7400-05 and bring another fall, below said support would add credence to this view, bring retracement of recent rise towards support at 0.7303

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Trade Idea : USD/CAD - Stand aside

As the greenback has rebounded after falling to 1.2972 yesterday, suggesting minor consolidation would be seen and recovery to 1.3100 cannot be ruled out, however, reckon upside would be limited to 1.3130-35 and price should falter well below 1.3200, bring another decline later. A break of said support at 1.2972 would extend the fall from 1.3457 top (tentatively wave v peak) to 1.2950 and possibly towards 1.2900-10

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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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