Tuesday, March 25, 2014

Action Insight Mid-Day Report 3-25-14

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: Euro Reversed Gains as Bundesbank Weidmann Softened Stance on QE Euro reversed this week's gain as Bundesbank chief Weidmann, who's also an ECB governing council member, said that quantitative easing is not out of the question yet. This marked softening of his stance against unconventional measures as he only emphasized the need for the discussion on the "effectiveness" and "costs and side-effects". Meanwhile, he also noted that "negative rates" is a "more appropriate measure" to counter the impact of appreciation of euro on inflation. Separately, European commission vice president for industry Tajani said warned that with EUR/USD at 1.4, the exchange rate "the economies of Spain, Italy, France and, in the long run, Germany." Tajani urged a debate on this issue ahead of European elections as "we can't have an industry policy without rethinking our currency." Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.3774; (P) 1.3825 (R1) 1.3889; More.... EUR/USD last steam after recovering to 1.3875 and dropped sharply. Intraday bias is turned neutral again. We're point out again that there is no clear sign of larger trend reversal yet. And fall from 1.3966 could well be just a correction pattern. We'd expect strong support inside 1.3642/3772 zone to contain downside and bring rebound. Above 1.3875 will bring retest of 1.3966. However, we'd also like to point out the possibility that rise from 1.2755 could have completed with five waves up to 1.3966. Break of 1.3642 will at least confirm near term reversal and target 1.3476 support 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
02:00	CNY	Conference Board Leading Index Feb	0.90%		1.20%	0.30%
09:00	EUR	German IFO - Business Climate Mar	110.7	110.9	111.3
09:00	EUR	German IFO - Current Assessment Mar	115.2	114.6	114.4
09:00	EUR	German IFO - Expectations Mar	106.4	107.7	108.3
09:30	GBP	CPI M/M Feb	0.50%	0.50%	-0.60%
09:30	GBP	CPI Y/Y Feb	1.70%	1.70%	1.90%
09:30	GBP	Core CPI Y/Y Feb	1.70%	1.60%	1.60%
09:30	GBP	RPI M/M Feb	0.60%	0.50%	-0.30%
09:30	GBP	RPI Y/Y Feb	2.70%	2.60%	2.80%
09:30	GBP	PPI Input M/M Feb	-0.40%	0.30%	-0.90%
09:30	GBP	PPI Input Y/Y Feb	-5.70%	-5.30%	-3.10%	-2.90%
09:30	GBP	PPI Output M/M Feb	0.00%	0.20%	0.30%
09:30	GBP	PPI Output Y/Y Feb	0.50%	0.70%	0.90%
09:30	GBP	PPI Output Core M/M Feb	0.10%	0.00%	0.50%
09:30	GBP	PPI Output Core Y/Y Feb	1.10%	1.00%	1.20%
09:30	GBP	DCLG UK House Prices Y/Y Jan	6.80%	6.60%	5.50%
09:30	GBP	BBA Mortgage Approvals Feb	47550	50000	49972
11:00	GBP	CBI Reported Sales Mar	13	28	37
13:00	USD	House Price Index M/M Jan	0.50%	0.70%	0.80%
13:00	USD	S&P/Case-Shiller Composite-20 Y/Y Jan	13.20%	13.34%	13.42%
14:00	USD	Consumer Confidence Mar	82.3	78.6	78.1
14:00	USD	New Home Sales Feb	440K	445K	468K	455K

Orders and Options Watch

US Session: Orders and Options Watch

EUR: The single currency slipped in European session after rising to a 4-day high of 1.3876 yesterday, bids at 1.3800-20 area and 1.3785 were filled but buy orders are tipped at 1.3765 and 1.3750 (stops below), fresh demand should emerge around 1.3735, 1.3720 and 1.3700. On the upside, offers are lowered to 1.3820 and 1.3845-50, sell orders are seen at 1.3875-80 and 1.3900 with stops placed above latter level, more selling interest is located at 1.3920 and 1.3940.

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Forex Trade Ideas

Trade Idea Wrap-up: GBP/USD - Sell at 1.6580

As cable has recovered after intra-day initial fall to 1.6481 on cross-trading in sterling, retaining our view that further consolidation above yesterday's low of 1.6460 would be seen and another corrective bounce to yesterday's high of 1.6536 is likely, however, reckon 1.6580-85 would limit upside and bring another decline later. A break of said intra-day low of 1.6481 would bring retest of 1.6460, break there would confirm the decline from 1.6823 top has resumed

Trade Idea Wrap-up: USD/JPY - Buy at 102.10

The greenback has remained confined within near term established range and expect support at 102.02-09 to limit dollar's downside, bring rebound later, above indicated resistance at 102.68 would extend the rebound from 101.21 to 102.80 resistance, break there would add credence to our view that low has been formed at 101.21 and bring a stronger rise to 103.00-10 but reckon upside would be limited to 103.40-45