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Mid-Day Report: Dollar Lower as Trader Turns Cautious ahead of NFPCommodity currencies are generally higher today while the greenback is broadly lower without a clear reason. Traders seemed to be getting a bit more cautious ahead of tomorrow's non-farm payroll report from US and are lightening up the positions. Released from US, ISM manufacturing index dropped to 50.2 in September versus expectation of 51.0. Construction spending rose 0.7% mom in August. Initial jobless claims rose 10k to 277k in the week ended September 26, higher than expectation of 273k. The 4-week moving average dropped 1k to 270.75k hitting the lowest level since 1973. Also, note that the initial claims have been below 300k for the 30 straight week, which was the longest streak since also 1973. Continuing claims dropped 53k to 2.19m in the week ended September 19, the lowest since November 2000. Challenger job cuts rose 93.2% yoy in September. | |
Featured Technical Report | |
GBP/USD Mid-Day OutlookDaily Pivots: (S1) 1.5084; (P) 1.5148; (R1) 1.5191; More... GBP/USD continues to lose downside momentum but there is not sign of recovery yet. And, with 1.5288 resistance intact, further decline is still expected to 61.8% retracement 1.4565 to 1.5929 at 1.5086 first. Decisive break there will pave the way back to 1.4565 low. Break of 1.5288 will bring rebound but risk will remain mildly on the downside as long as 1.5658 resistance holds. |
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: The single currency has rebounded in part due to soft US data, offers at 1.1170, 1.1185 and 1.1200 were filled but sell orders are still noted at 1.1220, 1.1245 and 1.1260, selling interest should emerge around 1.1280 and 1.1300. On the downside, bids are now seen at 1.1155-65, 1.1135 and 1.1120, buying interest is tipped at 1.1100-05, 1.1085 (stops below) and 1.1065, fresh demand is located at 1.1050, 1.1030 and 1.1000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea Update: USD/CHF - Sell at 0.9810Although the greenback has rebounded again after finding support at 0.9727 yesterday and consolidation with initial upside bias is seen for further recovery to 0.9800-10, however, as long as resistance at 0.9844 (last week's high) holds, risk of another retreat remains, below said support at 0.9727 would signal the rebound from 0.9687 has ended, bring another test of this level Trade Idea Update: GBP/USD - Buy at 1.5135As the British pound has recovered after intra-day marginal fall to 1.5107, suggesting an intra-day low has possibly been formed there and consolidation with mild upside bias is seen for test of the upper Kumo (now at 1.5185), however, break of indicated resistance at 1.5214 is needed to add credence to this view, bring retracement of recent decline to resistance at 1.5241 but price should falter well below previous resistance at 1.5289. Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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