Tuesday, February 4, 2014

Action Insight Daily Report 2-5-14

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: Markets Stabilized ahead of Key Data, Kiwi Rebounded on Employment Markets stabilized a bit from recent violent moves with DOW recovering 72.44 pts to close at 15445.24 overnight. Treasury yields also ended the day mildly higher with 10 year yield at 2.624% and 30 year yield at 3.593%. Asian equities ex-Japan are mixed swinging between gain and loss while Nikkei is trading up nearly 200 pts after yesterday's -610 pts fall. Dollar index is flat slightly above 81.00 for the moment. In the currency markets, yen crosses' recovery continue today as risk aversion receded mildly but are kept well below key near term resistance levels. The greenback is also staying in tight range against other major currencies. Nonetheless, some volatility is likely today with a number of important data features, including Eurozone PMI services, UK PMI services, US ADP employment and ISM non-manufacturing. Full Report Here...
Featured Technical Report
GBP/JPY Daily Outlook Daily Pivots: (S1) 164.52; (P) 165.26; (R1) 166.66; More..... GBP/JPY formed a temporary low at 163.87 and intraday bias is turned neutral for some sideway trading first. Near term outlook stays bearish with 167.76 support turned resistance intact. Below 163.87 will extend the fall from 174.84 to medium term trend line support at around 161.80. Sustained break there will have larger bearish implication and will bring a test on key support level at 159.98. 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
21:45	NZD	Unemployment Rate Q4	6.00%	6.00%	6.20%
21:45	NZD	Employment Change Q/Q Q4	1.10%	0.60%	1.20%
0:01	GBP	BRC Shop Price Index Y/Y Jan	-1.00%		-0.80%
8:45	EUR	Italian PMI Services Jan		48.6	47.9
9:00	EUR	Eurozone PMI Services Jan F		51.9	51.9
9:00	EUR	Eurozone PMI Composite Jan F		53.2	53.2
9:30	GBP	PMI Services Jan		59	58.8
10:00	EUR	Eurozone Retail Sales M/M Dec		1.50%	1.40%
13:15	USD	ADP Employment Change Jan		195K	238K
13:30	CAD	Building Permits M/M Dec		2.50%	-6.70%
15:00	USD	ISM Non-Manufacutring Composite Jan		53.9	53
15:30	USD	Crude Oil Inventories			6.4M

Orders and Options Watch

US Session: Orders and Options Watch

GBP: The British pound rebounded in London in part due to the release of better-than-expected UK data, offers at 1.6315-20 and 1.6340 were filled but sell orders are still noted at 1.6350 and 1.6370, more selling interest is located at 1.6400-10, sizeable offers remain at 1.6440-50 and 1.6470-80. On the downside, bids in good size are still seen at 1.6250-60 with some stops placed below 1.6240, option defensive buying interest is seen at 1.6200-10.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Buy at 0.8240

Although the single currency has retreated after intra-day rise to 0.8326, reckon 0.8240 would limit downside and near term bullishness remains for the rebound from 0.8168 temporary low to bring retracement of recent decline, above said resistance would bring test of previous resistance at 0.8349, however, break there is needed to encourage for further subsequent gain towards next resistance at 0.8393 later.

Trade Idea: USD/CAD - Sell at 1.1140

As the greenback retreated after resuming recent rise to 1.1224 late last week, suggesting a temporary top is possibly formed there and consolidation with downside bias is seen for test of 1.1032 support, however, a sustained breach below there is needed to add credence to this view, bring retracement of recent upmove to 1.0990-00 and possibly towards support at 1.0950-55. Looking ahead, only a drop below 1.0950 would signal the wave v has ended at 1.1224 last week