Tuesday, November 11, 2014

Action Insight Daily Report 11-11-14

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Action Insight Market Overview Markets Snapshot

Daily Report: Yen Broadly Lower As Nikkei Jumps

Yen drops broadly following another day of rally in Japanese equities. Nikkei rose 343.58 pts, or 2.05% to 17124.11, hitting another seven year high. It's reported that prime minister Shinzo Abe might call a snap vote within this year if he decided to postpone the planned sales tax hike in October 2015. Also, BoJ said that JPY 38b in ETF was bought as part of the stimulus program. Released from Japan consumer confidence dropped to 38.9 in October, Eco Watchers current sentiment dropped to 44, machine tools orders rose 31.2% yoy. USD/JPY took out 115.57 near term resistance and resumed recent rally.

Full Report Here...


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Featured Technical Report

USD/JPY Daily Outlook

Daily Pivots: (S1) 114.17; (P) 114.54; (R1) 115.22; More...

USD/JPY's break of 115.57 indicates resumption of recent rally. Intraday bias is back on the upside for 161.8% projection of 101.08 to 110.08 from 105.19 at 119.75 next. On the downside, break of 113.85 support is needed to indicate short term topping. Otherwise, outlook stays bullish in case of retreat.

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Economic Indicators Update

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GMT Ccy Events Actual Consensus Previous Revised
23:50 JPY Current Account (JPY) Sep 0.41T 0.03T 0.13T
0:01 GBP BRC Retail Sales Monitor Y/Y Oct 0.00% -0.50% -2.10%
0:30 AUD NAB Business Confidence Oct 4 5
0:30 AUD House Price Index Q/Q Q3 1.50% 1.50% 1.80% 1.90%
5:00 JPY Consumer Confidence Oct 38.9 40.5 39.9
6:00 JPY Eco Watchers Survey: Current Oct 44 47.2 47.4
6:00 JPY Machine Tool Orders Y/Y Oct P 31.20% 34.70%
   

Orders and Options Watch

European Session: Orders and Options Watch

EUR: The single currency slipped again after brief recovery, offers are lowered to 1.2440-50 and 1.2475-80, mixture of offers and stops is located at 1.2500-10, more sell orders are tipped at 1.2520-25 (stops above 1.2530-35) and 1.2550-55, selling interest is reported at 1.2580 and 1.2600. On the downside, bids at 1.2450 and 1.2400-20 area were filled, some buy orders are reported at 1.2375, 1.2355-60, combination of bids and stops is seen at barrier at 1.2350, fresh demand should emerge further out at 1.2325-35, 1.2300-10 and 1.2280-85.

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Forex Trade Ideas

Trade Idea: EUR/GBP - Hold long entered at 0.7800

The single currency fell marginally to 0.7799 late last week before rebounding and recovery to 0.7885-90 cannot be ruled out, however, break of resistance at 0.7913 is needed to suggest low is possibly formed, bring test of 0.7940-50, break there would signal  the retreat from 0.8047 has ended and bring a stronger rebound to 0.8000. Looking ahead, only break of resistance area at 0.8047-66 would provide confirmation, bring retracement of decline to 0.8100 first.

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Trade Idea: USD/CAD - Buy at 1.1260

Although Friday's retreat adds credence to our view that further consolidation below last week's high of 1.1467 would be seen and near term downside risk remains for retracement of recent upmove to 1.1295-00 (50% Fibonacci retracement of 1.1122-1.1467), reckon 1.1254-59 (61.8% Fibonacci retracement and previous minor support) would limit downside and bring another rise later. Above 1.1400 would bring another test of said resistance at 1.1467

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Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530
Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF

Elliott Wave Daily Trade Ideas Update Schedule (GMT):
AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500

Suggested Readings

Fundamental Highlights

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