Sunday, January 5, 2014

Action Insight Daily Report 1-6-14

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: Risk Aversion Dominates Asian Markets, Yen Extends Rebound Risk aversion dominates the Asian markets today. Nikkei is down over -2%, or -350 pts, trading back below 16000 level at the time of writing as Japan is back from holiday. Hong Kong HSI is down nearly -200 pts or 0.85%. A trigger for the selloff is disappointing services data from China. The HSBC/Markit services PMI dropped to 50.9 in December, down from prior month's 52.5. The data followed Friday's official PMI services which slowed to a four month low of 54.6. Combining the negative manufacturing PMI data released last week, the set of data suggested that China's growth slowed in Q4 in a broad-based term and could carry on into Q1 this year. Economists are expecting that China's growth would hit 7.6% in 2013, just above the official target of 7.5%. Full Report Here...
Featured Technical Report
GBP/JPY Daily Outlook Daily Pivots: (S1) 171.25; (P) 171.88; (R1) 172.72; More..... GBP/JPY's pull back from 174.84 extends lower today and reaches as low as 170.40 so far. As noted before, a short term top could be in place at 174.84 already, with divergence condition in 4 hours MACD. Intraday bias remains on the downside for 170.05 resistance turned support and break will confirm this case and target 166.57 and below. However, rebound from current level, followed by break of 172.23 minor resistance, will keep the near term rising trend line intact. In such case, intraday bias will be flipped back to the upside for retesting 174.84 high. 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 Services Dec		47.2
09:00	EUR	Eurozone PMI Services Dec F	51	51
09:30	GBP	PMI Services Dec	60.3	60
09:30	EUR	Eurozone Sentix Investor Confidence Jan	9.3	8
13:00	EUR	German CPI M/M Dec P	0.30%	0.20%
13:00	EUR	German CPI Y/Y Dec P	1.40%	1.30%
13:30	CAD	Industrial Product Price M/M Nov	0.00%	-0.30%
13:30	CAD	Raw Materials Price Index M/M Nov	-1.10%	-2.30%
15:00	USD	ISM Non-Manufacutring Composite Dec	54.5	53.9
15:00	USD	Factory Orders Nov	1.70%	-0.90%

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency extended the decline from 1.3894 in NY morning, bids at 1.3625-30 and stops below there were cleared, however, indicated demand remain at 1.3600-05 (more stop orders placed below), buy orders are expected further out at 1.3550-60 with bigger stops building up below 1.3520. On the upside, offers are lowered to 1.3660-70 (stops above 1.3680), 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 Wrap-up: EUR/USD - Target met and stand aside

As the single currency has fallen again after faltering below the Kijun-Sen, justifying to our bearish view that top has been formed at 1.3894 late last week and our short position entered at 1.3725 met indicated target at 1.3625, near term downside bias remains for the fall from 1.3894 to bring correction of recent upmove to 1.3580-85

Trade Idea Wrap-up: GBP/USD - Sell at 1.6530

Although the British pound has fallen again after brief recovery, loss of near term downward momentum should prevent sharp fall below 1.6370 and reckon 1.6345-50 would hold from here, risk from there is seen for a rebound to take place soon, above 1.6470-75 would bring recovery to 1.6500, having said that, as a temporary top has been formed at 1.6604, upside should be limited to 1.6525-30 and bring another selloff later