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Monday, September 7, 2009

Action Insight Daily Report 9-7-09

ActionForex.com
Action Insight Daily Report

Commodity Currencies Strengthen in Light Trading

Riding on strength in Asian stock markets, commodity currencies rally across the board as the week starts. Following rebound in US stocks on Friday, Nikkei gapped higher today, remained firm throughout the session and closed 1.3% higher. China stocks also managed to rose mildly even though they pared some gains towards the close. AUD/USD and NZD/USD are both staying firm above August high and are extending rally in early European session. European majors are generally higher against the greenback but remain in range so far.

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Candlesticks & Ichimioku Analysis

Trade Idea: USD/CHF - Sell At 1.0650

Despite Friday's brief jump to 1.0700, the retreat from there suggests as long as 1.0700-08 resistance holds, recent decline would resume after consolidation and break of recent low at 1.0529 would confirm and extend weakness to 1.0500, then towards 1.0451 (50% projection of 1.1742 to 1.0592 measuring from 1.1026), however, oversold condition would limit downside and price should stay well above chart support at 1.0370.

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Trade Idea: GBP/USD - Buy At 1.6300

As cable has risen again after finding renewed buying at 1.6288 last Friday and this morning's break of 1.6415 resistance suggests the rise from 1.6113 low to retrace recent decline would bring further gain to 1.6469 (38.2% Fibonacci retracement of 1.7044 to 1.6113) and possibly towards 1.6500. However, reckon 1.6579 (50% Fibonacci retracement) would hold from here due to overbought condition and bring retreat later.

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Trade Idea: EUR/USD - Buy At 1.4240

Despite falling to 1.4191 last Friday after the release of slightly better-than-expected U.S. job reports, the subsequent strong rebound on cross-buying of euro versus Japanese yen suggests gain towards 1.4407 resistance would be seen, however, break of recent high at 1.4448 is needed to confirm medium term upmove has resumed and extend to 1.4474 (50% projection of 1.2885 to 1.4339 measuring from 1.3747), then 1.4500.

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Trade Idea: USD/JPY - Buy At 92.50

Despite Friday's brief retreat to 92.27, the subsequent rebound partly due to cross-selling in Japanese yen suggests a temporary low has been formed at 91.94 last week and gain towards the Ichimoku cloud top (now at 93.81) is underway, however, only a sustain break there would confirm and bring correction of recent decline to 94.08, then 94.37 50% Fibonacci retracement of 96.80 to 91.94) but resistance at 95.07 should remain intact.

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Featured Technical Report Market Highlights

AUD/USD Daily Outlook

Daily Pivots: (S1) 0.8409; (P) 0.8472; (R1) 0.8565; More

AUD/USD's rally continues today and at this point, intraday bias remains on the upside and sustained trading above 0.8519 key resistance now sets the stage for further rally to 61.8% projection of 0.6284 to 0.8262 from 0.7702 at 0.8924. On the downside, below 0.8500 minor support will turn intraday outlook neutral and bring consolidation. But break of 0.8239 support is needed to indicate AUD/USD has topped. Otherwise, short term outlook remains bullish.

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All Technical Outlook Reports

Daily Top Movers

Top 5 Current Last Change
(Pips)
Change
(%)
NZDJPY 64.64 63.89 +75 +1.16%
CADJPY 86.39 85.41 +98 +1.13%
AUDJPY 79.83 79.08 +75 +0.94%
NZDUSD 0.6931 0.6869 +62 +0.89%
USDCAD 1.0792 1.0880 -88 -0.82%

Last Updated: Sep 07, 08:20 GMT

Currency Heat Map Daily View

USD EUR JPY GBP CHF CAD AUD
USD
EUR
JPY
GBP

Last Updated: Sep 07, 08:20 GMT

Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
08:30 EUR Eurozone Sentix Investor Confidence Sep -13.7 -17
10:00 EUR German Factory Orders M/M Jul 2.00% 4.50%
10:00 EUR German Factory Orders Y/Y Jul -20.60% -25.30%
US; Canada Holiday
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Technical Highlights

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