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| 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: Markets in Tight Range in Thin Holiday TradingMarkets are generally steady in tight range on thin trading as US markets will be on July 4 holiday today. Euro stayed in tight range against most major currencies as markets are awaiting tomorrow's ECB meeting as well as an important 10 year bond auction in Spain. Eurozone services PMI was revised higher to 47.1 in June. Sterling is mildly softer ahead of BoE rate decision but is basically just stuck in range. UK PMI services came in weaker than expected at 51.3 in June and added some weigh on the pound. Aussie was lifted mildly earlier today on stronger than expected retail sales figures but no follow through buying was seen. Canadian dollar also failed to extend yesterday's rally as Crude oil retreated ahead of 90 psychological level. |
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| Featured Technical Report | |
EUR/AUD Daily OutlookDaily Pivots: (S1) 1.2237; (P) 1.2267; (R1) 1.2291; More... Intraday bias in EUR/AUD remains on the downside for the moment and current fall from 1.3028 is expected to continue to 1.2132 support first. Break will confirm larger down trend resumption for 1.2. psychological level. On the upside, above 1.2297 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited below 1.2528 and bring another fall. |
| Special Report |
BOE To Raise Asset Purchase Size To 375B Pound, 25% Of GDPAdditional asset purchases of 50B pounds in the July BOE meeting have been priced in the GBP. Indeed, Governor Mervyn King has hinted since the last meeting that further easing would be adopted to boost the economy. In June, MPC members voted 5-4 to maintain the asset purchases unchanged. Those voted against additional easing would like to gauge the impact of the emerging 'Funding for Lending', i.e. the Long Term Repo Operation (LTRO). It did not mean they were against increasing stimulus ultimately. Rather most of them expected to ease further in due course. ECB To Cut Policy Rate To 0.75%, No Further Unconventional MeasuresWe expect the ECB to cut the main refinancing rate by -25 bps to 0.75% and the deposit rate by -15 bps to 0.1% at the July meeting. President Draghi admitted the economic outlook has been deteriorating and accompanying with 'serious' downside risks. Yet, further unconventional measures will not be announced at this meeting. While the sovereign debt crisis in the bloc has remained a fundamental problem, it is officially the responsibility of the national governments to find resolutions, instead of the central bank. |
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||
European Session: Orders and Options WatchEUR: Although the single currency rebounded yesterday by European closing and tripped stops above 1.2615-20, euro ran into fresh offers just below 1.2630 and has retreated from there in late U.S. session partly due to a report that the Spanish bank aid may be delayed until 20 July. At the moment, some bids are still noted at 1.2580 and also in very good size at 1.2550-60 with stops building up below 1.2540, however, fresh demand should emerge around 1.2520 and 1.2500. On the upside, offers from Asian CBs and real money accounts remain at 1.2600-10, 1.2630 as well as 1.2650 with stops placed above 1.2670, followed by mixture of offers and stops at 1.2690-00 (related to option barrier at 1.2700). | |||||||||||||||||||||||||||||||||||||||||||||||||
| Forex Trade Ideas | |||||||||||||||||||||||||||||||||||||||||||||||||
Trade Idea: EUR/USD – Hold long entered at 1.2585Although euro rebounded from yesterday’s low of 1.2559 to 1.2627 in New York overnight, as price has retreated after failing to penetrate the Ichimoku cloud top, suggesting further consolidation would be seen, however, as long as said support holds, bullishness remains for another rebound, above said resistance would bring test of 1.2667 minor resistance. Trade Idea: GBP/USD – Buy at 1.5605As cable has retreated again after faltering below resistance at 1.5722, suggesting consolidation below this level would be seen and pullback to 1.5642-47 (minor support and current level of the Ichimoku cloud bottom) cannot be ruled out, however, reckon 1.5604 (50% Fibonacci retracement of 1.5485-1.5722) would limit downside and bring another rise later. Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||
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Fundamental Highlights
Technical Highlights | |||||||||||||||||||||||||||||||||||||||||||||||||
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