Monday, January 6, 2014

Action Insight Mid-Day 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
Mid-Day Report: Dollar Mildly Softer as ISM Service Missed Dollar weakens mildly in early US session after weaker than expected services data. The ISM non-manufacturing composite dropped to 53 in December versus consensus of a rise from 53.9 to 54.5. Meanwhile factory orders rose 1.8% in November versus expectation of 1.7%. Equities are flat with DOW and S&P 500 engaging in very tight range. Treasury yields opened mildly lower and stay soft. Senate is set to vote on Janet Yellen's nomination as next Fed Chairman today. The current vice chairman Yellen is expected to pass the vote easily and would become the first woman to chair Fed. She will take the reins on February first as Bernanke steps down on January 31. Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.3555; (P) 1.3613 (R1) 1.3646; More.... Intraday bias in EUR/USD remains on the downside at this point. As noted before, Prior break of 1.3625 support indicates that a short term top is at least formed. Considering bearish divergence condition in daily MACD, the rise from 1.2755 might be completed too. Deeper fall would be seen to 38.2% retracement of 1.2755 to 1.3892 at 1.3458 first. On the upside, above 1.3676 minor resistance will turn bias neutral and bring recovery. But risk will stays on the downside in near term. 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
08:45	EUR	Italian PMI Services Dec	47.9	48.9	47.2
09:00	EUR	Eurozone PMI Services Dec F	51	51	51
09:30	GBP	PMI Services Dec	58.8	60.3	60
09:30	EUR	Eurozone Sentix Investor Confidence Jan	11.9	9.3	8
13:00	EUR	German CPI M/M Dec P	0.40%	0.30%	0.20%
13:00	EUR	German CPI Y/Y Dec P	1.40%	1.40%	1.30%
13:30	CAD	Industrial Product Price M/M Nov	0.10%	0.00%	-0.30%
13:30	CAD	Raw Materials Price Index M/M Nov	-4.10%	-1.10%	-2.30%
15:00	USD	ISM Non-Manufacutring Composite Dec	53	54.5	53.9
15:00	USD	Factory Orders Nov	1.80%	1.70%	-0.90%

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: EUR/GBP - Buy at 0.8260

As the single currency has retreated again after intra-day brief rebound to 0.8332, suggesting near term downside risk remains for the fall from 0.8467 to extend marginal weakness, however, as broad outlook is still consolidative, reckon downside would be limited to previous support at 0.8252 and bring another rebound, above 0.8332-35 would suggest low is possibly formed and bring a stronger rebound to 0.8373

Trade Idea: USD/CAD - Buy at 1.0650

Despite falling to 1.0588 late last week, the subsequent rebound suggests further consolidation within recent established range would be seen and another rebound towards recent high of 1.0737 cannot be ruled out, however, break there is needed to revive bullishness and confirm the upmove from 1.0182 low (wave (c) bottom) has resumed, bring further gain to 1.0750-55 (61.8% projection of 1.0398-1.0708 measuring from 1.0561) and possibly towards 1.0800