Wednesday, January 1, 2014

Action Insight Daily Report 1-2-14

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: Sterling Rallies as 2014 Starts, Manufacturing Data Watched DOW had a strong close last year making new record high at 16575.55 while S&P 500 also closed at record 1848.36. Meanwhile, it should also be noted that treasury yields in US also made a strong close with 10 year yield at 3.026% and 30 year yield at 3.964% both new highs. But positive sentiments didn't follow through to Asian session today. Major indices are mildly pressured following disappointment from China's manufacturing data. Japan and China are still on holiday. In the currency markets, Sterling is leading the way in rally against dollar, comparing with other major currencies. GBP/USD extends recent rally and reaches as high as 1.6591 so far. EUR/GBP also dips further to as low as 0.8285, extending recent decline fro 0.8446. Some more volatility could be seen in the pound with PMI manufacturing featured in UK today. Full Report Here...
Featured Technical Report
GBP/JPY Daily Outlook Daily Pivots: (S1) 173.26; (P) 173.88; (R1) 174.96; More..... GBP/JPY's rally continues today and reaches as high as 174.84 so far today. Intraday bias remains on the upside. Current rise should extend to 161.8% projection of 147.61 to 159.98 from 156.63 at 176.64 next. On the downside, below 172.81 minor support will turn bias neutral and bring consolidations first. But retreat should be contained above 170.05 resistance turned support and bring another rally. 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	Consensus	Previous
08:45	EUR	Italian PMI Manufacturing Dec	51.7	51.4
09:00	EUR	Eurozone PMI Manufacturing Dec F	52.7	52.7
09:30	GBP	PMI Manufacturing Dec	58.2	58.4
13:30	USD	Initial Jobless Claims (DEC 28)		338K
15:00	USD	ISM Manufacturing Dec	56.9	57.3
15:00	USD	ISM Prices Paid Dec	52.8	52.5
15:00	USD	Construction Spending M/M Nov	0.60%	0.80%

Forex Trade Ideas

Trade Idea: EUR/USD - Sell on break of 1.3725

Despite last week's rally to 1.3894, the subsequent sharp retreat suggest a temporary top is possibly formed and consolidation would be seen, however, break of support at 1.3728 is needed to add credence to this view and extend the fall from 1.3894 to 1.3700, then previous support at 1.3655 but only break of another support at 1.3625 would provide final confirmation

Trade Idea: USD/JPY - Buy at 105.00

Although the greenback has risen again after finding renewed buying interest at 104.86 earlier this week, break of resistance at 105.41 is needed to confirm recent upmove has resumed and extend gain to 105.68 (50% projection of 103.77-105.41 measuring from 104.86), then 105.87 (61.8% projection) but reckon near term overbought condition would limit upside to 106.00 and price should falter well below 106.40-50.