Action Insight Market Overview	Markets Snapshot
Sentiments Weighed Down by Dovish FOMC, ECB Rate Cut Awaited Sentiments was somewhat weighed down by the dovish FOMC statement overnight as DOW dropped -138.85 pts while S&P 500 dropped -14.87 pts. Asian equities also followed by opening lower and stay soft. The development in US equities suggests that recent consolidation is still in progress and is probably extending with another down leg. DOW faced some selling pressure ahead of April's high of 14887. While S&P 500 edged to record high earlier this week, it also faced some pressure ahead of 1600 psychological level. A focus will be on whether the NFP from US on Friday would trigger deeper pull back in stocks and pressure commodity currencies. But before that, focus will be on ECB rate decision today first. Full Report Here...
Featured Technical Report
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.2720; (P) 1.2783; (R1) 1.2886; More..... EUR/AUD rises further to as high as 1.2866 so far today and broke mentioned 61.8% retracement of 1.3189 to 1.2218 at 1.2818. Intraday bias remains on the upside and current rally would now extend towards 1.3189 resistance next. On the downside, break of 1.2611 support is needed to signal completion of such rebound from 1.2218. Otherwise, outlook will stay cautiously bullish. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Special Report

ECB To Cut Policy Rate To 0.5% There has been increasing conviction that the ECB would announce to cut interest rates at its Thursday meeting, thanks to the weakness in economic data. While disappointing German PMI and IFO, and the French business climate indicator had shown initial signs of vulnerability of the bloc's economic developments, moderate inflation and the rise in jobless rate released yesterday have reinforced easing bias. On the rate cut, the deposit rate, currently at zero, is expected to stay unchanged. Read more... Fed Opens The Door For Further Easing As Economic Recovery Slows Down As widely expected, the Fed left its policy stance unchanged with asset purchases of 85B maintained. Yet, the policy statement was increasingly dovish with policymakers indicating that further easing would be adopted should the economic recovery stall. The central bank acknowledged economic growth at a moderate pace but admitted slowdown in inflation and was less enthusiastic on the job market. It also raised concerns that the negative effects to be imposed by fiscal tightening. The policy statement was also a reminder that QE can move in both direction, rather than market focus of reduction later in the year. Read more...

Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised 23:50 JPY Monetary Base Y/Y Apr 23.10% 19.80% 1:30 AUD Building Approvals M/M Mar -5.50% 1.30% 3.10% 3.00% 1:30 AUD Import Price Index Q/Q Q1 0.00% -0.50% 0.30% 1:45 CNY HSBC Manufacturing PMI Apr 50.4 50.6 51.6 7:30 CHF SVME-PMI Apr 50.2 49 48.3 8:00 EUR Eurozone PMI Manufacturing Apr F 46.5 46.5 8:30 GBP PMI Construction Apr 48 47.2 11:30 USD Challenger Job Cuts Y/Y Apr 30.00% 11:45 EUR ECB Rate Decision 0.50% 0.75% 12:30 EUR ECB Press Conference 12:30 CAD International Merchandise Trade (CAD) Mar -0.70B -1.02B 12:30 USD Trade Balance Mar -$42.0B -$43.0B 12:30 USD Non-Farm Productivity Q1 P 1.80% -1.90% 12:30 USD Unit Labor Costs Q1 P 0.00% 4.60% 12:30 USD Initial Jobless Claims 345K 339K 14:30 USD Natural Gas Storage 30B
Orders and Options Watch
European Session: Orders and Options Watch EUR: Despite rising to as high as 1.3243 yesterday, the single currency ran into defensive offers below 1.3250 option barrier and has retreated in European and NY sessions, bids at 1.3165-70 were filled. At the moment, some bids are still noted at 1.3140-50 and also at 1.3120 as well as 1.3100 (good size), stops are reported below 1.3140 and 1.3100 (large) but mixture of bids and stops is located further out at 1.3050-60. On the upside, offers are now reported at 1.3190-00 and also in good size at 1.3220, indicated defensive offers remain at 1.3250 with stops expected above said barrier. Option expires today include: 1.2950, 1.3000, 1.3070, 1.3090, 1.3095, 1.3100, 1.3135, 1.3150, 1.3160, 1.3165 and 1.3200. Read more...
Forex Trade Ideas
Trade Idea: GBP/USD - Sell at 1.5630 Although the British pound has retreated after rising briefly to 1.5607 yesterday, reckon the Ichimoku cloud (now at 1.5519-29) would limit downside and risk remains for recent upmove to extend one more rise to 1.5625-30, however, still reckon upside would be limited to 1.5640-45 (50% projection of 1.5196-1.5547 measuring from 1.5467), risk from there is seen for a strong pullback to take place later. A clear break below the Ichimoku cloud bottom would bring weakness to 1.5500 Read more... Trade Idea: EUR/USD - Turn short at 1.3200 Although the single currency resumed recent rise to 1.3243 yesterday, the subsequent retreat suggest a temporary top is possibly formed there (with a shooting star on both hourly and daily chart), hence consolidation with mild downside bias is seen for test of previous resistance at 1.3121 but break of the lower Kumo (now at 1.3115) is needed to add credence to this view and bring correction of recent upmove to 1.3100 Read more... 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 Euro Erases Gains, JPY Strengthens Asia Session: A One-Two Punch Adds To AUD's Battering Aussie, Stocks And Copper Hit By Weak Growth Fed Maintains Policy, But Prepared To 'Increase Or Reduce' QE U.S. FOMC Leave Funds Target and Purchase Program Unchanged Technical Highlights EURJPY 'One Way, Or Another' GBP/USD Tranquil In Absence Of Data Day Daily Technical Analysis Daily Forex Update: AUD/USD