Monday, January 6, 2014

Action Insight Daily Report 1-7-14

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 Mildly Softer in Consolidations, Yellen Confirmed as Fed Chair US equities extended recent pullback with DOW closed mildly lower by -0.27% while S&P 500 was down -0.25%. Asia stocks, on the other hand, are mixed with Nikkei down -0.52% but mild recoveries are seen elsewhere. Dollar was soft overnight after services data and stays in range against European majors in Asian session, as well as commodity currencies. Yen also lost some upside momentum and turned sideway. Overall, markets are in consolidative mode. Dollar and yen maintains some mild upside bias against European majors. Commodity currencies are still mildly bearish against the the greenback but we'd possibly see short term bottoming in Canadian and Australia in case of another fall. Full Report Here...
Featured Technical Report
USD/CAD Daily Outlook Daily Pivots: (S1) 1.0614; (P) 1.0647; (R1) 1.0686; More... USD/CAD continues to stay in range below 1.0736 and intraday bias remains neutral. Further rally is still expected with 1.0560 support intact. But again, we'd expect strong resistance from 1.0803 long term retracement level to bring reversal. This view is also supported by the triangle look of the consolidation pattern from 1.0736, which should be followed by a terminal thrust. Break of 1.0560, will indicate that a short term top is at least formed and is an early sign that whole rally from 0.9633 has completed. In such case, outlook will be turned bearish for 1.0415 support first. 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
23:50	JPY	Monetary Base Y/Y Dec	46.60%	55.20%	52.50%
0:30	AUD	Trade Balance (AUD) Nov	-118M	-250M	-529M
8:00	CHF	Foreign Currency Reserves Dec		435.0B	435.7B
8:55	EUR	German Unemployment Change Dec		-2K	10K
8:55	EUR	German Unemployment Rate Dec		6.90%	6.90%
10:00	EUR	Eurozone PPI M/M Nov		-0.10%	-0.50%
10:00	EUR	Eurozone PPI Y/Y Nov			-1.40%
10:00	EUR	Eurozone CPI Estimate Y/Y Dec		0.90%	0.90%
13:30	CAD	International Merchandise Trade (CAD) Nov		-0.15B	0.08B
13:30	USD	Trade Balance Nov		-$40.0B	-$40.6B
15:00	CAD	Ivey PMI Dec		55	53.7

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency bounced off low of 1.3571 and offers at 1.3610 were filled but sell orders are still noted at 1.3630-40 and also at 1.3660-70 (stops above 1.3680), more selling interest is located at 1.3690-00 and in good size at 1.3725-30 with stops placed above 1.3750 and 1.3780. On the downside, buy orders are still seen at 1.3550-60 and 1.3530 with bigger stops building up below 1.3520, fresh demand should emerge around 1.3500-10 and further out at 1.3485.

Trade Idea Wrap-up: USD/JPY - Hold short entered at 104.85

Despite intra-day initial selloff from 104.95 to 104.15, as the greenback has rebounded after holding above support at 104.07, suggesting further choppy trading is in store but reckon said resistance at 104.95 would limit upside and bring another decline later. A break of said support at 104.07 would extend the fall from last week's high of 105.44 for correction of recent upmove towards previous support at 103.77 and later towards 103.50

Trade Idea Wrap-up: GBP/USD - Sell at 1.6500

Despite intra-day brief fall to 1.6338, as the British pound found support there and has staged a strong rebound, suggesting the decline from 1.6604 has formed a temporary low there, hence consolidation above this level is seen with mild upside bias for recovery to the lower Kumo (now at 1.6451) and possibly to resistance at 1.6474, however, the upper Kumo (now at 1.6503) should limit upside and bring another decline later.