Monday, October 5, 2015

Action Insight Mid-Day Report 10-5-15

ActionForex.com
Action Insight Market Overview Markets Snapshot

Mid-Day Report: Commodity Currencies Rise With Stock Rebound

Commodity currencies are generally higher today on strength in global equity markets. Dollar is soft against Euro but stays in recently established range. meanwhile, Sterling, is a touch weaker than the greenback. Yen and Swiss Franc are the weakest on risk appetite as usual. Overall, we're not seeing any impressive moves in the forex markets expect in Canadian dollar. Released from US, ISM non-manufacturing composite dropped to 56.9 in September versus expectation of 58.0.

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Featured Technical Report

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 118.90; (P) 119.65; (R1) 120.62; More...

The sideway consolidation continues in USD/JPY as it stays bounded in range of 118.58/121.62. 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
23:30 AUD TD Securities Inflation M/M Sep 0.30% 0.10%
01:30 JPY Real Cash Earnings Y/Y Aug 0.50% 0.70% 0.30% 0.90%
07:45 EUR Italy Services PMI Sep 53.3 54.8 54.6
08:00 EUR Eurozone Services PMI Sep F 53.7 54 54
08:30 EUR Eurozone Sentix Investor Confidence Oct 11.7 12.2 13.6
08:30 GBP Services PMI Sep 53.3 56.4 55.6
09:00 EUR Eurozone Retail Sales M/M Aug 0.00% -0.10% 0.40% 0.60%
14:00 USD ISM Non-Manufacutring Composite Sep 56.9 58 59
14:00 USD Labor Market Conditions Index Change Sep 0 2.1 1.2
Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency ran into renewed selling interest at 1.1290 and has dropped again, bids at 1.1220 were filled but buy orders are still noted at 1.1200, 1.1185 and 1.1155-60, buy orders are reported at 1.1135 and 1.1120, mixture of bids and stops is located at 1.1100. On the upside, offers are now seen at 1.1245-50, 1.1280-90 and 1.1315-20 (stops above), sell orders are expected at 1.1350, 1.1380 and 1.1400.

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Forex Trade Ideas

Trade Idea: AUD/USD - Sell at 0.7150

As aussie has rebounded again after brief pullback, suggesting near term upside risk remains for gain to 0.7145-50 (61.8% Fibonacci retracement of 0.7280-0.6937) cannot be ruled out, however, reckon upside would be limited to resistance at 0.7159, bring retreat later, below 0.7040-45 would bring test of 0.6995-00 but break there is needed to signal the rebound from 0.6937 has ended, bring retest of this support

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Trade Idea: EUR/JPY - Stopped profit and stand aside

Despite last week's retreat to 133.44, as the single currency staged a stronger-than-expected rebound after holding above previous support at 133.16, suggesting further choppy trading is in store and recovery to 136.10-15 cannot be ruled out, however, as outlook remains consolidative, reckon upside would be limited to 136.75-80 and price should falter well below resistance at 137.45.

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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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