Monday, February 3, 2014

Action Insight Mid-Day Report 2-3-14

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: Sterling Dives on PMI Manufacturing Miss, Yen Advances Sterling is the biggest mover in European session today following the disappointment from manufacturing data. The PMI manufacturing index dropped more than expected to 56.7 in January versus consensus of 57.1. That was actually not a bad number as it's far above the long term average of 51.3 and marked the 10th month of expansion. The detail showed new export orders jumped to 57.5 and hit the highest level since 2011. CIPS noted that "the continued improvement in global market conditions has ushered in a broad based and fully fledged recovery in manufacturing." Also, Markit noted that " growth is still tracking at one of the highest rates in the 22-year survey history". Nonetheless, the movement in Sterling was seen as a catch up to recent weakness in other European majors. Full Report Here...
Featured Technical Report
EUR/GBP Mid-Day Outlook Daily Pivots: (S1) 0.8181; (P) 0.8211; (R1) 0.8236; More.... EUR/GBP rebounds strongly today and the breach of 0.8268 minor resistance suggests that the pull back from 0.8305 has completed at 0.8188 already. More importantly, the development revives that case that a short term bottom is formed at 0.8168, just ahead of 0.8164 key cluster support. Intraday bias is back on the upside for 0.8305 resistance first. Break will target 0.8348 resistance for indication on larger trend reversal. However, below 0.8188 will put focus back to 0.8164 instead. 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
23:30	AUD	TD Securities Inflation M/M Jan	0.10%		0.70%
0:30	AUD	Building Approvals M/M Dec	-2.90%	-0.30%	-1.50%	-0.30%
1:00	CNY	Non-manufacturing PMI Jan	53.4		54.6
8:30	CHF	SVME PMI Jan	56.1	55.1	53.9	55
8:45	EUR	Italian PMI Manufacturing Jan	53.1	54.2	53.3
9:00	EUR	Eurozone PMI Manufacturing Jan F	54	53.9	53.9
9:30	GBP	PMI Manufacturing Jan	56.7	57.1	57.3
13:30	CAD	Industrial Product Price M/M Dec	0.70%	0.40%	0.10%	0.20%
13:30	CAD	Raw Materials Price Index M/M Dec	1.90%	2.10%	-4.10%	-4.20%
15:00	USD	ISM Manufacturing Jan		56.4	57
15:00	USD	ISM Prices Paid Jan		53.9	53.5
15:00	USD	Construction Spending M/M Dec		0.40%	1.00%
23:50	JPY	Monetary Base Y/Y Jan		47.20%	46.60%

Orders and Options Watch

US Session: Orders and Options Watch

GBP: The British pound fell quite sharply today in London, stops below 1.6390 were tripped, buy orders at 1.6370-80 and 1.6350 as well as stops below 1.6340 were cleared, some bids are reported at 1.6310-20 with stops expected below 1.6300, fresh demand should emerge around 1.6270 and 1.6250. On the upside, offers are lowered to 1.6380 and 1.6400-10, sizeable sell orders remain at 1.6440-50 and 1.6470-80, more selling interest is expected at 1.6500-20 area and further out at 1.6550-70 region.

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Forex Trade Ideas

Trade Idea Update: GBP/USD - Sell at 1.6440

The British pound dropped sharply below previous support at 1.6369 after meeting resistance around the Kijun-Sen, suggesting the decline from 1.6669 top is still in progress and may bring stronger correction of early upmove to 1.6320 and possibly test of previous support at 1.6309, however, near term oversold condition should prevent sharp fall below latter level and reckon 1.6270-75 would hold from here, bring rebound later.

Trade Idea Update: EUR/USD - Sell at 1.3570

Last week's late selloff together with the breach of previous support at 1.3508 signal early fall from 1.3894 top has resumed and bearishness is seen for further weakness to 1.3450-60 and possibly towards 1.3430, however, near term oversold condition should prevent sharp fall below latter level and reckon previous key chart support at 1.3399 would hold from here, risk from there is seen for a rebound later.