Euro Reversing after Poor Italy Bond Auction

Action Insight Market Overview	Markets Snapshot
Euro Reversing after Poor Italy Bond Auction, Poor Confidence; FOMC Minutes Next Euro was sharply lower earlier today as markets were pretty disappointed by bond auction in Italy. Italy managed to sell EUR 7.75b of three-year and ten-year bonds today. That's close to the top end of EUR 6-8b target. However, the bid-to-cover ratio for 10 year bond was merely at 1.27, notably lower than the year's average of 1.4. Yield managed to drop from 5.77% to 5.22% but that was largely due to ECB buying with the Securities Market Program earlier this month. Without that, markets expect yield to easily rise above 6%. Investors are still in deep concern that it will get harder ahead for Italy to draw funds from the market for it's EUR 1.9T debt burden. Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.4468; (P) 1.4508 (R1) 1.4551; More. EUR/USD dips sharply to as low as 1.4383 after it struggled to take out 1.4537 resistance decisively. Intraday bias remains neutral with focus back on 1.4328 minor support. Break there will indicate that recent consolidations from 1.4939 is still in progress and should have started another falling leg. In such case, intraday bias will be flipped back to the downside for 1.4054 support first. Break will target 1.3837 support next. On the upside, note that decisive break of 1.4577 resistance will revive that case that EUR/USD is starting to breakout from recent consolidation from 1.4939 and should target 1.4695 resistance for more evidence. 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

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GMT Ccy Events Actual Consensus Previous Revised 22:45 NZD Building Permits M/M Jul 13.00% -1.40% -1.00% 23:30 JPY Household Spending Y/Y Jul -2.10% -3.50% -4.20% 23:30 JPY Unemployment Rate Jul 4.70% 4.60% 4.60% 23:50 JPY Retail Trade Y/Y Jul 0.70% 1.50% 1.10% 06:00 CHF UBS Consumption Indicator Jul 1.29 1.48 08:30 GBP Mortgage Approvals Jul 49k 49K 48.4K 08:30 GBP M4 Money Supply M/M Jul -0.10% 0.40% -0.50% 08:30 GBP M4 Money Supply Y/Y Jul -1.10% -0.70% 09:00 EUR Eurozone Consumer Confidence Aug -16.5 -16.6 -11.2 -11 09:00 EUR Eurozone Economic Confidence Aug 98.3 102 103.2 103 09:00 EUR Eurozone Industrial Confidence Aug -2.9 -0.5 1.1 1 09:00 EUR Eurozone Services Confidence Aug 3.7 6 7.9 12:30 CAD Current Account (CAD) Q2 -15.3B -13.6B -8.9B 12:30 CAD Industrial Product Price M/M Jul -0.30% 0.00% -0.30% 12:30 CAD Raw Materials Price Index M/M Jul -1.20% 0.00% -2.20% 13:00 USD S&P/Case-Shiller Composite-20 Y/Y Jun -4.50% -4.90% -4.50% 14:00 USD Consumer Confidence Aug 52.5 59.5 18:00 USD FOMC Minutes
Forex Trade Ideas
Trade Idea Update: USD/CHF – Buy at 0.8080 Despite intra-day rebound from 0.8121, a break of yesterday’s high of 0.8240 is needed to signal recent rise from record low of 0.7068 has resumed and extend gain to 0.8247, then another previous resistance at 0.8278, however, loss of near term upward momentum would prevent sharp move beyond there and upside should be limited to 0.8300, risk has increased for a correction later. Read more... Trade Idea: AUD/USD – Target met and buy again at 1.0550 As aussie has eased after intra-day rise to 1.0686, suggesting minor consolidation would take place and pullback to 1.0600 is likely, however, previous resistance at 1.0535 should hold and bring another rise later. A break of said resistance would extend the upmove from 0.9927 for a stronger retracement of the fall from 1.1081 to 1.0700 but reckon resistance at 1.0785-90 would hold from here. 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 London Session: European Problems Get More Complicated FOMC Minutes May Provide Early Clues To September's Crucial Fed Meeting Aussie Building Approvals Rise In July, But Weaker Than Expected Euro Slightly Higher As Sentiment On Risk Improves Japanese Unemployment Rises, But Equity Markets Firm Technical Highlights FX Thoughts for the Day Daily FX Report. GBPUSD - A Break Of A 1.6465 - 1.6364 Range? Move In GBPUSD Implies A Break In Short-Term Uptrend May Follow