Tuesday, February 4, 2014

Action Insight Mid-Day Report 2-4-14

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: US Markets Might Recover, But Risk Aversion Will Continue to Dominate Risk aversion continues to dominate the markets today as European stocks are generally lower follow the steep selloff in Asia. Nikkei closed -610.66 pts, or -4.18% down and barely managed to close above 14000 level at 14008.47. Though, sentiments seem to have stabilized a bit as European indices turned steady in early US session. Meanwhile, US stock futures point to a mild higher opening as markets digests recent losses. That could also be reflected in yen crosses which decline slowed mildly. But overall, there is no sign of change in recent trend and we'd expect further decline in stocks, yields and yen crosses ahead. Full Report Here...
Featured Technical Report
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.6250; (P) 1.6345; (R1) 1.6401; More... GBP/USD recovers mildly after dipping to 1.6256. But intraday bias remains on the downside with 1.6365 minor resistance intact. Prior break of 1.6309 support suggests that the pair has topped at 1.6667 already. Deeper decline would be seen to 1.6216 support next. Break will confirm that a medium term correction has started and would target 38.2% retracement of 1.4813 to 1.6667 at 1.5959. On the upside, above 1.6365 minor resistance will turn bias neutral and bring consolidations first. 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
23:50	JPY	Monetary Base Y/Y Jan	51.90%	47.20%	46.60%
3:30	AUD	RBA Rate Decision	2.50%	2.50%	2.50%
9:30	GBP	PMI Construction Jan	64.6	61.6	62.1
10:00	EUR	Eurozone PPI M/M Dec	0.20%	0.10%	-0.10%
10:00	EUR	Eurozone PPI Y/Y Dec	-0.80%	-0.90%	-1.20%
15:00	USD	Factory Orders Dec		0.70%	1.80%

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 Update: GBP/USD - Sell at 1.6400

Current strong rebound after intra-day fall to 1.6257 suggests an intra-day low is formed there and consolidation with mild upside bias is seen for retracement of recent decline to 1.6355-60 (38.2% Fibonacci retracement of 1.6520-1.6257) and possibly to 1.6385-90 (50% Fibonacci retracement), however, reckon upside would be limited to 1.6400 and bring another decline later. Below 1.6300 would bring a retest of 1.6257

Trade Idea Update: EUR/USD - Sell at 1.3580

As the single currency has rebounded again after intra-day brief retreat, retaining our view that further consolidation above yesterday's low of 1.3477 would be seen and test of 1.3553 (38.2% Fibonacci retracement of 1.3677-1.377) is likely, however, reckon upside would be limited to 1.3573-77 (Friday's high and 50% Fibonacci retracement) and bring another decline, break of said support would signal early fall from 1.3894 top has resumed for further weakness to 1.3450 and possibly towards 1.3430