Wednesday, February 19, 2014

Action Insight Mid-Day Report 2-19-14

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 Recovers as Focus Turns to FOMC Minutes Dollar recovers mildly in early US session despite weak housing data. Housing starts dropped to 0.88m annualized rate in January versus expectation of 0.975m. Building permits also dropped to 0.94 annualized rate versus expectation of 0.995m. PPI in US was unchanged at 1.2% yoy in January while core PPI moderated to 1.3% yoy. Next focus will be FOMC minute of January meeting. The information in the minutes shouldn't deviate from Fed chair Yellen's testimony to Congress last week. Fed would likely reiterate it would continue with measured tapering, by USD 10b during every FOMC meeting, should economy evolves as expected. A major point to note is whether there are debates on adjusting the unemployment threshold. Full Report Here...
Featured Technical Report
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.6643; (P) 1.6692; (R1) 1.6730; More... GBP/USD dips again today to 1.6686 so far as consolidation from 1.6822 continues. Intraday bias remains neutral for the moment. Downside of retreat is expected to be contained by 38.2% retracement of 1.6251 to 1.6822 at 1.6604 and bring another rally. Above 1.6822 will extend the up trend from 1.4813 to 1.7043 key resistance next. 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	Revised
23:00	AUD	Conference Board Leading Index Dec	0.80%		0.20%
04:30	JPY	All Industry Activity Index M/M Dec	-0.10%	0.20%	0.30%	0.40%
05:00	JPY	BoJ Monthly Report
09:30	GBP	Bank of England Minutes	0--0--9	0--0--9	0--0--9
09:30	GBP	Jobless Claims Change Jan	-27.6K	-18.3K	-24.0K	-27.7K
09:30	GBP	Claimant Count Rate Jan	3.60%		3.70%
09:30	GBP	ILO Unemployment Rate 3M Dec	7.20%	7.10%	7.10%
10:00	CHF	ZEW (Expectations) Feb	28.7	40	36.4
13:30	CAD	Wholesale Sales M/M Dec	-1.40%	-0.50%	0.00%
13:30	USD	Housing Starts Jan	0.88M	0.975M	0.999M
13:30	USD	Building Permits Jan	0.94M	0.995M	0.986M
13:30	USD	PPI M/M Jan	0.20%	0.10%	0.40%
13:30	USD	PPI Y/Y Jan	1.20%	1.20%	1.20%
13:30	USD	PPI Core M/M Jan	0.20%	0.20%	0.30%
13:30	USD	PPI Core Y/Y Jan	1.30%	1.40%	1.40%
19:00	USD	FOMC Minutes

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency found buying interest just below 1.3740 and more buy orders are reported at 1.3700-10, 1.3670-90 area and 1.3650-55 with stops building up below 1.3645, more buying interest is located at 1.3630 and 1.3600-10 (more stops below figure), fresh demand should emerge around 1.3580 and 1.3550-60. On the upside, offers from Asian CBs are still seen at 1.3775-85 (more stops above), fresh offers should emerge around 1.3800-1.3810 (related to option barrier at 1.3800 with buy stop orders above).

Read more...

Forex Trade Ideas

Trade Idea Update: USD/CHF - Buy at 0.8840

Although the greenback has remained under pressure and near term downside risk remains for the decline from 0.9082 to extend weakness to 0.8860-62 (previous support, 50% projection of 0.9038-0.8901 measuring from 0.8929 and 1.236 times projection of 0.9064-0.8940 measuring from 0.9038), loss of momentum should limit downside to 0.8840-45

Trade Idea Update: EUR/USD - Sell at 1.3795

Although the single currency has eased after rising to 1.3773 (exactly indicated projection level of 50% projection of 1.3562-1.3724 measuring from 1.3692) and minor consolidation is in store, reckon previous resistance at 1.3724 would limit downside and near term upside risk remains for one more rise towards 1.3790-95 (61.8% projection) which is likely to limit upside and bring another retreat later.