Thursday, January 2, 2014

Action Insight Daily Report 1-3-14

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: Aussie and Yen Rebounds, Reversing Last Year's Weakness The markets seemed to be reversing the year moves in the first two days of trading in 2014. DOW dived sharply by -135 pts to close at 16441.35, just after making record high of 16576.66 on January 2. S&P 500 also tumbled by -16.38 pts to close at 1831.98. Asian equities followed and are broadly in red while Japan markets are still on holiday. Hong Kong HSI drops over -400 pts, or -1.83% while Singapore Straits Times drops -24 pts, or -0.76%. In the currency markets, yen rebounds strongly on risk aversion with USD/JPY heading back to 104 handle for the moment. European majors are generally weak as the pull back against dollar extends. Meanwhile, Aussie also reversed some of year end's fall and breaches 0.90 handle. Technically, we'd be cautious on whether the reversal in markets would build up momentum. Full Report Here...
Featured Technical Report
GBP/JPY Daily Outlook Daily Pivots: (S1) 171.18; (P) 173.01; (R1) 174.19; More..... The sharp decline suggests that a short term top is formed at 174.84 on bearish divergence condition in 4 hours MACD. Intraday bias is mildly on the downside and deeper pull back could be seen to 170.05 resistance turned support and below. Though, outlook will stay bullish as long as 166.57 support holds and another rally is still expected. Break of 174.84 will extend the larger up trend to 161.8% projection of 147.61 to 159.98 from 156.63 at 176.64 next. 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
08:00	CHF	KOF Leading Indicator Dec	1.91	1.85
08:30	CHF	SVME PMIs Dec	56.2	56.5
09:00	EUR	Eurozone M3 Y/Y Nov	1.50%	1.40%
09:30	GBP	PMI Construction Dec	62	62.6
09:30	GBP	Mortgage Approvals Nov	69.7K	67.7K
09:30	GBP	M4 Money Supply M/M Nov		0.10%
15:30	USD	Natural Gas Storage		-177B
16:00	USD	Crude Oil Inventories		-4.7M

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency slipped through out the day, stops at 1.3715-25, 1.3700 and 1.3655 were triggered, however, fresh demand should emerge around 1.3625-30 and 1.3600-05 (more stops placed below both levels). On the upside, offers are lowered to 1.3690-00 and in good size at 1.3725-30 with stops building up above 1.3750 and 1.3780. sizeable sell orders remain at 1.3795-00, combination of offers and stops is located at 1.3820.

Trade Idea: USD/CAD - Stopped profit and stand aside

As the greenback has retreated again after faltering below recent high of 1.0737, suggesting recent upmove is not ready to resume yet and consolidation below said resistance would be seen, however, only a sustained breach below 1.0561 support would abort bullishness and signal a temporary top has been formed at 1.0737, bring correction of recent rise to support at 1.0510-15, then 1.0490

Trade Idea Wrap-up: EUR/USD - Hold short entered at 1.3725

Euro's intra-day selloff together with the breach of previous support at 1.3655 add credence to our view that top has been formed at 1.3894 late last week and mild downside bias remains for correction of recent upmove to another previous support at 1.3625 but only break there is needed to retain bearishness and extend the fall from 1.3894 top for weakness towards 1.3590-00.