Saturday, November 21, 2015

Action Insight Weekly Report 11-20-15

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Action Insight Weekly Report Markets Snapshot

Dollar Extended Gain Against Dollar on Diverging Monetary Policy Paths

The impact from Paris terror attacks to the global financial markets was rather short lived. Stocks staged strong rebound after initial dip last week. Meanwhile, policy divergence was back to be the main theme in the currency markets. Dollar managed to record broad based weekly gain, except versus Aussie, as FOMC minutes added to the case for December Fed rate hike. Meanwhile, Euro and Swiss Franc were the weakest and ECB officials' rhetorics affirmed the case for additional stimulus in December ECB meeting. RBA minutes provided little news to the market but that was enough to support Aussie' rebound. BoJ left policies unchanged as widely expected and triggered little reaction. The upcoming week is rather busy even though US will be on bank holiday on Thursday. But traders will likely look beyond this week's event and instead, await for the key central bank meetings next month.

Full Report Here...


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Featured Technical Report

EUR/USD Weekly Outlook

EUR/USD dipped to 1.0616 initially last week but turned sideway since then. Initial bias remains neutral this week first. As long as 1.0829 minor resistance holds, deeper decline is still expected. Current fall should target a test on 1.0461 low. Decisive break there will confirm down trend resumption and target 50% projection of 1.3993 to 1.0461 from 1.1713 at 0.9947 next. On the upside, above 1.0829 resistance will indicate short term bottoming and bring stronger rebound.

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Suggested Readings

 

The Week in Review and Outlook

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