Thursday, December 19, 2013

Action Insight Daily Report 12-20-13

Action Insight	Candlesticks Trades	Markets Summary	Action Bias	Top Movers	Daily Technicals
Calendar	Elliott Wave Trades	Markets Volatility	Pivot Points	Heat Map	Daily Fundamentals

Action Insight Market Overview	Markets Snapshot
Daily Report: Yen Soft as BoJ Kept Monetary Policies Unchanged The Japanese yen remains soft in Asian session as BoJ kept monetary policies unchanged as widely expected. Board members voted unanimously to keep the target of monetary base expansion at an annual pace of JPY 60T to 70T. That includes JPY 50T in JGBs with average remaining maturity of seven years, JPY 1T in ETFS, JPY 30b in J-REITs, as well as CPs and corporate bonds. In the accompanying statement, BoJ noted that the domestic economy has been "recovering moderately" with pick up in exports and business fixed investments. The economy is expected to "continue a moderate recovery as a trend". Meanwhile, with CPI at 1%, "inflation expectations appear to be rising on the whole". Kiuchi proposed again to change the 2% inflation target to a medium to long term target but was voted down by 8-1. Full Report Here...
Featured Technical Report
USD/JPY Daily Outlook Daily Pivots: (S1) 103.88; (P) 104.12; (R1) 104.47; More... Intraday bias in USD/JPY remains on the upside for the moment. The larger up trend from 75.56 is in progress and further rally would be seen to 38.2% projection of 77.13 to 103.73 from 96.56 at 106.72 next. On the downside, break of 102.49 is needed to signal short term topping. Otherwise, outlook will stay bullish in case of retreat. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Economic Indicators Update

GMT	Ccy	Events	Actual	Consensus	Previous
0:05	GBP	GfK Consumer Sentiment Dec	-13	-11	-12
1:00	JPY	BoJ Monetary Policy Statement
7:00	EUR	German PPI M/M Nov		-0.10%	-0.20%
7:00	EUR	German PPI Y/Y Nov		-0.80%	-0.70%
7:00	EUR	German GfK Consumer Sentiment Jan		7.4	7.4
9:30	GBP	GDP Q/Q Q3 F		0.80%	0.80%
9:30	GBP	Public Sector Net Borrowing (GBP) Nov		13.4B	6.4B
9:30	GBP	Index of Services 3M/3M Oct		0.90%	0.70%
13:30	USD	GDP (Annualized) Q3 F		3.60%	3.60%
13:30	USD	GDP Price Index Q3 F		2.00%	2.00%
13:30	CAD	BoC CPI Core M/M Nov		0.10%	0.20%
13:30	CAD	BoC CPI Core Y/Y Nov		1.20%	1.20%
13:30	CAD	CPI M/M Nov		0.10%	-0.20%
13:30	CAD	CPI Y/Y Nov		1.00%	0.70%
13:30	CAD	Retail Sales M/M Oct		0.20%	1.00%
13:30	CAD	Retail Sales Less Autos M/M Oct		0.10%	0.00%
15:00	EUR	Eurozone Consumer Confidence Dec A		-15	-15.4

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency traded in relatively narrow range after yesterday's volatile price action, some demand is still seen at 1.3650 with more stops tipped below, more buy orders are reported at 1.3515-20 and 1.3500. On the upside, offers remain at 1.3690-00 and 1.3720-30, more offers are expected at 1.3760-70 and mixture of offers and stops in good size is located at 1.3815-25, selling interest is tipped at 1.3840-50 (option barrier) and 1.3870-85.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Hold long entered at 0.8340

Although the single currency has remained under pressure after this week's sharp retreat and near term downside risk remains for a stronger correction of the rise from 0.8525 low, reckon downside would be limited to 0.8334 (61.8% Fibonacci retracement) and bring another rise later. Above 0.8400-10 would suggest the retreat from 0.8467 has possibly ended and bring another bounce to 0.8440-50 but break of said resistance at 0.8467 is needed to retain bullishness

Trade Idea: USD/CAD - Hold long entered at 1.0565

Yesterday's rally together with the breach of previous resistance at 1.0708 adds credence to our bullish view for recent upmove to resume and the rise from 1.0182 low (wave (c) bottom) should extend further gain to 1.0730 (1.236 times projection of 1.0271-1.0526 measuring from 1.0415) and possibly 1.0760-65, however, near term overbought condition should prevent sharp move beyond 1.0800-10 and reckon 1.0850 would hold from here.