Thursday, February 6, 2014

Action Insight Daily Report 2-7-14

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 and Yen Hold Losses ahead of NFP Dollar and yen are holding on to yesterday's loss against European majors as markets are awaiting January employment data from US. ECB rate decision and Draghi's press conference triggered a rebound in Euro with EUR/USD breaching 1.36 overnight but there was no follow through buying above that level. On the other hand, rebound in stocks also lifted yen crosses in general with USD/JPY back above 102 level for the moment. DOW closed 188.3 pts, or 1.22% higher and the short covering in equities carried on in Asia today. Nikkei is up nearly 300 pts at the timing of writing, trading around 14450 after an attempt on 14000 handle earlier this week. The employment data from US will be defining for the trend for the rest of the month. Full Report Here...
Featured Technical Report
USD/CAD Daily Outlook Daily Pivots: (S1) 1.1040; (P) 1.1080; (R1) 1.1111; More... USD/CAD's consolidation from 1.1223 is still in progress and intraday bias remains neutral for the moment. Bearish divergence condition in 4 hours MACD argues that the pair might have topped in near term. Break of 1.1031 will confirm this case and bring deeper pull back to 55 days EMA (now at 1.0833). For now, sustained break of 1.1235 is needed to confirm rally resumption. Otherwise, outlook will be neutral and we'd anticipate a correction sooner or later. 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
0:30	AUD	RBA Monetary Policy Statement
5:00	JPY	Leading Index Dec P	112.1	111.9	111.1
7:00	EUR	German Trade Balance (EUR) Dec		17.3B	17.8B
8:00	CHF	Foreign Currency Reserves Jan			435.2B
8:15	CHF	Retail Sales (Real) Y/Y Dec		3.90%	4.20%
9:30	GBP	Visible Trade Balance (GBP) Dec		-9.3B	-9.4B
9:30	GBP	Industrial Production M/M Dec		0.60%	0.00%
9:30	GBP	Industrial Production Y/Y Dec		2.30%	2.50%
9:30	GBP	Manufacturing Production M/M Dec		0.60%	0.00%
9:30	GBP	Manufacturing Production Y/Y Dec		2.30%	2.80%
11:00	EUR	German Industrial Production M/M Dec		0.50%	1.90%
13:30	USD	Change in Non-farm Payrolls Jan		175K	74K
13:30	USD	Unemployment Rate Jan		6.70%	6.70%
13:30	CAD	Net Change in Employment Jan		17.5K	-45.9K
13:30	CAD	Unemployment Rate Jan		7.10%	7.20%
15:00	GBP	NIESR GDP Estimate Jan			0.70%

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency has rallied in reaction to comments from ECB's Draghi, offers at 1.3550-1.3580 area and 1.3600 were filled, some sell ordersare still noted at 1.3620-30 (stops above) and further out at 1.3650-60 with bigger stops expected above 1.3680-90. On the downside, bids are raised to 1.3570 and 1.3545-50, fresh demand should emerge above 1.3500 with stops building up below 1.3470-80.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Buy at 0.8240

As the single currency has jumped again after brief pullback, near term bullishness remains for the rebound from 0.8168 temporary low to bring retracement of recent decline, a firm break above resistance at 0.8349-50 would add credence to this view, bring further subsequent gain towards next resistance at 0.8393 later but reckon 0.8430-35 would limit upside and price should falter below resistance at 0.8467

Trade Idea: USD/CAD - Sell at 1.1170

As the greenback retreated after rising to 1.1224 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