Wednesday, January 8, 2014

Action Insight Mid-Day Report 1-8-14

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Action Insight Market Overview	Markets Snapshot
Mid-Day Report: Dollar Advances after Strong ADP Job Data Canadian dollar remains the weakest currency this week and yesterday's selloff extends and is picking up some steam. Meanwhile, the greenback is bid up in early US session after solid job market data. ADP report showed 238k growth in private sector jobs in December, much better than expectation of 195k. Prior month's figure was also revised up from 215k to 229k. The highlight of this week will be non-farm payroll report to be released on Friday, which is expected to show 193k growth. The solid ADP data raised home for an upside surprise in NFP. Incoming job data will be crucial to determine the pace of Fed's tapering of the asset purchase program and would continue to trigger volatility in the dollar. Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.3589; (P) 1.3622 (R1) 1.3649; More.... EUR/USD weakens today and breaching 1.3571 suggests that fall from 1.3892 is resuming. Intraday bias is back on the downside. As noted before, considering bearish divergence condition in daily MACD, the rise from 1.2755 might be completed at 1.3892. Deeper decline would be seen to 38.2% retracement of 1.2755 to 1.3892 at 1.3458 first. On the upside, above 1.3656 minor resistance will 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

2014 Elliott Wave Forecast

Economic Indicators Update

GMT	Ccy	Events	Actual	Consensus	Previous	Revised
00:01	GBP	BRC Shop Price Index Y/Y Dec	-0.80%		-0.30%
07:00	EUR	German Trade Balance (EUR) Nov	17.8B	18.9B	16.8B	16.7B
10:00	EUR	Eurozone Retail Sales M/M Nov	1.40%	0.10%	-0.20%
10:00	EUR	Eurozone Unemployment Rate Nov	12.10%	12.10%	12.10%
11:00	EUR	German Factory Orders M/M Nov	2.10%	1.30%	-2.20%	-2.10%
13:15	USD	ADP Employment Change Dec	238K	195K	215K
15:30	USD	Crude Oil Inventories			-7.0M
19:00	USD	FOMC Minutes

Orders and Options Watch

US Session: Orders and Options Watch

EUR: Despite intra-day brief fall to 1.3567, the single currency found good buying interest above just below previous support at 1.3571 and buy orders are still seen at 1.3550-60, more bids are expected at 1.3525-30 with bigger stops building up below 1.3520, fresh demand should emerge around 1.3500 and further out at 1.3485. On the upside, offers remain from 1.3635 up to 1.3660, more sell orders are located at 1.3680 and further out at 1.3700, selling interest in good size is tipped at 1.3725-30 with stops placed above 1.3750 and 1.3780.

Trade Idea Update: EUR/USD - Sell at 1.3635

As the single currency has dropped again after meeting renewed selling interest at 1.3635, suggesting the decline from 1.3894 top has resumed and further weakness to 1.3550-60 (1.618 times projection of 1.3894-1.3728 measuring from 1.3819 and 61.8% projection of 1.3819-1.3630 measuring from 1.3677) and possibly towards 1.3524-32 (previous chart support and 50% projection of 1.3819-1.3571 measuring from 1.3656) would be seen

Trade Idea Update: GBP/USD - Sell at 1.6500

As the British pound has rebounded again after holding above yesterday's low of 1.6374, retaining our view that 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 1.6474 (previous resistance), however, reckon 1.6500 would limit upside and bring another decline later. A break of said support at 1.6338 would extend the fall from 1.6604 top to previous support at 1.6316