Thursday, January 9, 2014

Action Insight Daily Report 1-10-14

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: Dollar Takes a Breath as Markets Await NFP The dollar index extended recent rebound to as high as 81.17 over night but lost momentum as traders are preparing for today's employment data from US. The non-farm payroll report is expected to show 193k job growth in December while unemployment rate is expected to be unchanged at 7.0%. Taking a look at the leading indicators for NFP, the ADP employment reported showed 238k growth in private sector jobs, beating expect ions and was an improvement over November's figure. The employment component of ISM manufacturing rose for the second month to 56.9, hitting the highest level since June 2011. Employment component of ISM services had been quite volatile in recent months but did improved back to 55.8 from 52.5. Conference board consumer confidence also staged a strong rebound to 78.1 from 72.0. So, overall, the leading indicates argued that December's NFP would likely come with an upside surprise and be better than November's 203k. Full Report Here...
Featured Technical Report
USD/CAD Daily Outlook Daily Pivots: (S1) 1.0815; (P) 1.0845; (R1) 1.0872; More... USD/CAD lost some upside momentum after hitting near term channel resistance. A temporary top is formed at 1.0874 and intraday bias is turned neutral for some consolidations first. Focus is back on 1.0736 resistance turned support. Break will indicate that the pair has failed to sustain above long term fibonacci a level of 1.0803 and would turn outlook bearish for 1.0588 support and below. However, above 1.0874 again should now indicate strong upside momentum for next key resistance at around 1.0950 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

2014 Elliott Wave Forecast

Economic Indicators Update

MT	Ccy	Events	Actual	Consensus	Previous
0:01	GBP	BRC Sales Like-For-Like Y/Y Dec	0.40%		0.60%
5:00	JPY	Leading Index Nov P		110.8	109.8
6:45	CHF	Unemployment Rate Dec		3.20%	3.20%
8:00	CHF	CPI M/M Dec		-0.10%	0.00%
8:00	CHF	CPI Y/Y Dec		0.20%	0.10%
9:30	GBP	Industrial Production M/M Nov		0.20%	0.40%
9:30	GBP	Industrial Production Y/Y Nov		2.80%	3.20%
9:30	GBP	Manufacturing Production Y/Y Nov		3.20%	2.70%
9:30	GBP	Manufacturing Production M/M Nov		0.30%	0.40%
13:30	USD	Change in Nonfarm Payrolls Dec		193K	203K
13:30	USD	Unemployment Rate Dec		7.00%	7.00%
13:30	CAD	Net Change in Employment Dec		13.1K	21.6K
13:30	CAD	Unemployment Rate Dec		6.90%	6.90%
15:00	GBP	NIESR GDP Estimate Dec			0.80%
15:00	USD	Wholesale Inventories Nov		0.40%	1.40%

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency slipped in reaction to comments from ECB's Draghi on monetary policy, bids at 1.3580 and 1.3550-60 were filled, stops below 1.3545-50 are now in focus, more buy orders are expected at 1.3525-30 with bigger stops building up below 1.3520, fresh demand should emerge around 1.3500 and further out at 1.3485. On the upside, offers are now seen at 1.3585 and 1.3600-10 with combination of offers and stops located at 1.3635-40, more sell orders are tipped at 1.3660-70 (stops are placed above there), selling interest is expected at 1.3680 and further out at 1.3700.

Trade Idea: USD/CAD - Target met and stand aside

As the greenback has risen again after this week's anticipated resumption of recent upmove (our long position entered at 1.0650 met indicated target at 1.0850 with 200 points profit), adding credence to our view that recent impulsive upmove is still in progress and may extend further rise in wave (c) towards 1.0900-10, however, near term overbought condition should limit upside to 1.0940-50

Trade Idea: EUR/GBP - Hold long entered at 0.8250

As the single currency has remained under pressure after breaking previous support at 0.8252, suggesting near term downside risk remains for the fall from 0.8467 to extend marginal weakness, however, loss of downward momentum should prevent sharp fall below 0.8325-30 and bring another rebound later, above 0.8280 would bring test of 0.8332-35 but break there is needed to suggest low is possibly formed