| 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 |
Mid-Day Report: Aussie and Loonie Weaken While European Majors Range BoundNo following through rally was seen in European majors today as Euro, Sterling and Swiss France are still bounded in recent range against dollar. Meanwhile, focus has turned to Aussie and Loonie. The Australian dollar dipped sharply against US dollar after an Australian treasury report noted that RBA could cut rate further on Aussie's strength. The report noted that Aussie is "well above its post-float average" and is "overvalued compared to its medium-to-long run equilibrium value". While treasury economist thought that intervention might lead to market instability, they do believe that thee are rooms for RBA to cut rates if the strength of Aussie inflicts too much pressure on the economy. AUD/USD took out support level of 1.0435, which confirms near term topping and more downside will be likely. |
|
| Featured Technical Report | |
AUD/USD Mid-Day OutlookDaily Pivots: (S1) 1.0481; (P) 1.0503; (R1) 1.0532; More... AUD/USD's break of 1.0435 minor support indicates that a short term top is at least formed at 1.0612, ahead of the upper trend line resistance as expected. More importantly, whole rally from 0.9588 could have completed too. Intraday bias is back on the downside for lower channel support (now at 1.0347). Sustained break there will affirm our bearish view and should target 1.0176 support and below. On the upside, above 1.0528 is needed to signal completion of the fall from 1.0612. Otherwise, we'll stay cautiously bearish now. |
| Special Reports |
Loonie Supported By Rate Hike RhetoricWeakening global economic outlook, ongoing sovereign debt crisis in the Eurozone and flaggy domestic economic recovery should be convincing factors leading to depreciation in Canadian dollar. However, similar to other commodity currencies, the loonie has been getting stronger again the US dollar since early June. The key reason is that the economic situation in the US is even worse. Other than this, CAD is also supported by safe haven demand, bottoming of monetary easing in the BOC and strength in crude oil prices. Kiwi To Be Support By Interest Rate Differential And Soft Commodity PricesSimilar to the Australian dollar, the New Zealand dollar also proved to be resilient despite concerns over global economic slowdown. Strength of the kiwi against the backdrop of sluggish domestic economic recovery after emerging from recession in 2009 has led to talks of official intervention of the currency market. Prime Minister John Key said last week that a strong NZD would make the economy 'splutter and stutter and probably stop' and that 'a rising exchange rate takes pressure off the Reserve Bank. Base rates are still much higher than they are generally around the world -2.5%. There are options, so let's see'. In our opinion, it would be rare for the RBNZ to intervene at the current trend of the NZD. Concerning the outlook, while the kiwi has been pressured by the lack of stimulus from the Fed and the ECB, it would strengthen again in the longer-term as supported by interest rate differential and the rise of soft commodity prices. |
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: Although the single currency rose marginally to 1.2382 in European session, the single currency ran into offers ahead of previous resistance at 1.2386 and has retreated in New York opening on pre-weekend profit-taking, bids at 1.2340 were filled but more bids are noted at 1.2310-15 and further out at 1.2380, followed by sizeable bids from various parties (including Asian and Middle East names) at 1.2255-60 with mixtures of bids and stops remain at 1.2240 and 1.2210-20. On the upside, offers are reported from 1.2380 up to 1.2400 and more selling interests from funds are tipped further out at 1.2440-50 (related to barrier at 1.2450) with more stops placed above there. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forex Trade Ideas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Idea Update: USD/CHF – Sell again at 0.9780Although dollar has remained under pressure after yesterday’s anticipated selloff from 0.9800 and test of indicated support at 0.9697 is likely, sustained breach below there is needed to signal the correction from 0.9656 has ended at 0.9809, bring retest of this level later, once this support is penetrated, this would signal early decline from 0.9972 top has resumed for weakness to 0.9640 and then 0.9620 but reckon 0.9600 would hold. Trade Idea: EUR/JPY – Buy at 97.50As the single currency has rallied after breaking indicated resistance at 97.82 and has maintained a firm undertone, adding credence to our bullish view that a temporary low has been formed at 94.12 earlier and upside bias remains for a stronger retracement of recent decline to 98.75-80 (61.8% Fibonacci retracement of 101.63-94.12), then towards 99.10-20, however, reckon upside would be limited and price should falter well below psychological resistance at 100.00. 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