| Having trouble viewing this email? Click here |
 |  |
| 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 |
Daily Report: Euro Bounded in Tight Range ahead of EU Summit, Breakout Soon?Markets continues to stay in tight range, awaiting a fresh round of inspiration from EU summit even though the hope for something concrete is dim. There were talk that China is going to introduce additional stimulus and another reserve requirement ratio cut in July. However, judging from the reactions in China stocks, which dropped for the seventh consecutive days, and Hong Kong stocks, which struggled to gather momentum for rebound, markets are not buying into the idea. In the fx market, Euro continues to struggle in tight range against dollar and yen at the time of writing but will likely have a breakout either today or tomorrow, before markets close this week. |
|
| Featured Technical Report | |
EUR/JPY Daily OutlookDaily Pivots: (S1) 99.11; (P) 99.36; (R1) 99.65; More EUR/JPY continues to stay in tight range and intraday bias remains neutral. As noted before, rebound from 95.64 could extend higher with 98.53 minor support intact. Above 99.96 minor resistance will flip bias to the upside for 101.62 and above. But considering bearish divergence condition in 4 hours MACD, even in case of another rise, upside should be limited by 61.8% retracement of 108.00 to 95.64 at 103.27 and bring reversal. On the downside, break of 95.83 should now indicate that larger decline from 111.43 is resuming and should flip bias back to the downside for 95.64 and below. |
| Special Reports |
USDJPY to be Range-Bound in Coming MonthsWhile some had expected that Japanese yen would decline after passage of the consumption tax hike, the reality was that weakness in the yen was limited and the bill had rather mild impact on the currency. For a long period of time, USD/JPY has been directed by yield differential between US and Japanese bonds. Therefore, monetary policies of respective central banks have indicative meaning for the pair. Both the Fed and the BOJ have already brought the policy rates to unprecedentedly low levels and have shown cautiousness in implementing further unconventional easing. This has made the USD/JPY outlook more difficult to project. Meanwhile, strength of the yen has more driven by the external environment instead of domestic economic developments. We expect USD/JPY will continue fluctuating within a wide -range of 75-85 for the rest of the year. EURUSD to Break Below 1.20 by Year EndWe are bearish on the euro's outlook in the second half of the year. Likely delay of the ESM due to Germany's Federal Constitutional Court's examination of the mechanism, expectation of rate cut as it tends to focus more on growth and capital outflow from the Eurozone to small economies such as Switzerland are the key reasons behind our anticipation for further weakness in the single currency. The recovery of EUR/USD since the beginning of June has probably ended and the decline might have resumed. We forecast the currency pair to fall to as low as 1.19 by the year end. |
| Economic Indicators Update | Learn Expert Strategies to Profit in a Presidential Election Year. Join me at this year's MoneyShow San Francisco, August 24-26, at the San Francisco Marriott Marquis and be there as recommendations and advice are revealed for how to best position your portfolio for profit - in 2012 and beyond! | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Orders and Options Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Session: Orders and Options WatchEUR: Although the single currency slipped to 1.2445 in New York session overnight, indicated bids above support at 1.2441-42 continued to put a floor on the pair and price has rebound from there this morning in Asia on short-covering ahead of the EU summit meeting, offers and stops at 1.2500-10 were cleared but offers are still noted at 1.2530, 1.2550 (stops are also reported there) as well as 1.2580-85 with stops tipped at 1.2590-00 and also at 1.2640-50. On the downside, bids from Asian and Middle East names remain at 1.2470-75 and also at 1.2440-50 with stops in good size placed below latter level, followed by combination of bids and stops in good size at 1.2400. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forex Trade Ideas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Idea: USD/JPY – Bought at 79.45Although the greenback rebounded to 79.87 yesterday, as price has retreated after faltering below the Ichimoku cloud top, suggesting further consolidation would take place, however, as long as support at 79.23 (this week’s low) holds, mild upside bias remains for another rebound, above said resistance (this would also penetrate the upper Kumo now at 79.84) would retain bullishness for a stronger rebound to 80.40-45 but price should stay below resistance at 80.63. Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Suggested Readings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fundamental Highlights
Technical Highlights
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
| ||||||||
No comments:
Post a Comment