Action Insight Market Overview	Markets Snapshot
Post FOMC Risk Selloff Continues, Dollar Firm Markets have clearly responded negatively to Fed's Operation Twist announcement overnight. Asian equities are broadly lower with Nikkei down -2% following the -2.5% fall in DOW. 10 Year yield dropped to record low of 1.875% while 30 year yield barely held above 3%. Crude oil broke 85 level and should be heading back to 75 .71 low set August. Dollar index jumped on risk aversions and breaches 78 level today so far. Commodity currencies are hardest hit on risk aversion as well as on respective reasons. Sterling is also pressured by expectation of more QE from BoE and hover around record low against yen. Euro, on the other hand, is relatively resilient so far and is holding above 1.35 again dollar even though it's vulnerable. Full Report Here...
Featured Technical Report
GBP/JPY Daily Outlook Daily Pivots: (S1) 117.68; (P) 119.14; (R1) 119.93; More GBP/JPY drops to as low as 118.35 so far and broke key support level of 118.81. There is no sign of bottoming yet and intraday bias remains on the downside for deeper decline. Sustained trading below 118.81 will target 161.8% projection of 130.83 to 123.29 from 127.31 at 115.11 in near term. On the upside, note that break of 122.26 resistance is needed to signal short term bottoming in the cross. Otherwise, outlook will remain cautiously bearish even in case of recovery. 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

Featured Technical Report

Fed Announced Active Operation Twist As expected, the Fed announced to extend the average maturity of its holdings of securities so as to stimulate the economic recovery and to help ensure inflation is consistent with the dual mandate over time. The operation twist that the Fed adopts is an active one. It involves selling $400B of Treasury securities with maturities of 3 years or less and simultaneous purchase of a similar amount of Treasuries in the 6-30 year remaining maturity range. The Fed funds rate was keep unchanged at 0-0.25%. 3 Fed presidents who voted against additional policy easing were Richard Fisher, Narayana Kocherlakota, and Charles Plosser. Read more...

Economic Indicators Update	The Futures and Forex Expo Las Vegas, June 15-18, 2011 at Caesars Palace. Register now and prepare for three days that will get you on track for a profitable future! Register FREE today! Top trading expert speakers, analysts and exhibitors. Discover the Newest Comer to the market, analyze latest market trends explore different trading platforms, and explore a wide opportunity on future investments. The 9th ME Forex & Investment Summit 2011 World MoneyShow Toronto, September 8-10, 2011, at The Metro Toronto Convention Center. Your one-stop resource for the most comprehensive education, efficient research, and valuable advice. Register Free Today! World MoneyShow Vancouver, September 19-21, 2011, at The Vancouver Convention Center. Be there as recommendations and advice are revealed for how to best position your portfolio for profit - in 2011 and beyond. Register Free Today!
GMT Ccy Events Actual Consensus Previous Revised 22:45 NZD GDP Q/Q Q2 0.10% 0.50% 0.80% 7:00 EUR French PMI Manufacturing Sep P 48.5 49.1 7:00 EUR French PMI Services Sep P 54.2 56.8 7:30 EUR German PMI Manufacturing Sep P 50.2 50.9 7:30 EUR German PMI Services Sep P 50.6 51.1 8:00 EUR Eurozone PMI Manufacturing Sep P 48.6 49 8:00 EUR Eurozone PMI Services Sep P 51.1 51.5 9:00 EUR Eurozone Industrial New Orders M/M Jul -1.20% -0.70% 9:00 CHF ZEW Survey (Expectations) Sep -71.4 10:00 GBP CBI Trends Total Orders Sep -5 1 12:30 CAD Retail Sales M/M Jul -0.30% 0.70% 12:30 CAD Retail Sales Less Autos M/M Jul 0.20% -0.10% 12:30 USD Initial Jobless Claims 420K 428K 14:00 EUR Eurozone Consumer Confidence Sep P -18 -16.5 14:00 USD Leading Indicators Aug 0.10% 0.50% 14:00 USD House Price Index M/M Jul 0.10% 0.90% 14:30 USD Natural Gas Storage 87B
Orders and Options Watch
European Session: Orders and Options Watch JPY: The greenback surged across the board after FOMC announcement of 'Operation Twist' and despite intra-day retreat on stop-loss selling in AUD/JPY, active buying by German names and Japanese importers (for settlement demand) lifted USD/JPY sharply higher (biggest rise in 2 weeks) and stops at 76.70 were tripped, however, indicated offers from exporters at 77.00 still put a lid on the pair and price has retreated again from 76.97. At the moment, offers from exporters (partly due to half fiscal year end) remain at 77.00 with some stops seen above there but more selling interest should emerge around 77.30-40 with more stops placed above there. On the downside, bids from same parties (some Japanese margin accounts also joined bid) are noted from 76.60 down to 76.30 with stops remain below 76.10 and 75.90. Read more...
Forex Trade Ideas
Trade Idea: EUR/USD – Sell at 1.3650 Despite overnight brief bounce to 1.3799, the single currency ran into heavy offers there and has tumbled on dollar’s broad-based strength, the breach of indicated support at 1.3556-58 confirms our view that correction from 1.3495 has ended at 1.3937 and bearishness remains for a retest of 1.3495, however, break there is needed to signal recent decline has resumed and extend weakness to 1.3450/55 which is likely to hold on first testing. Read more... Trade Idea: USD/JPY – Hold long entered at 76.45 Although the greenback rallied overnight after FOMC, dollar failed to penetrate indicated resistance at 77.00 and has retreated from 76.97, suggesting further consolidation would take place and pullback to the Kijun-Sen (now at 76.61) cannot be ruled out, however, as long as support at 76.11 holds, consolidation with upside bias remains for another test of said resistance. A break of 77.00 would signal low is formed and bring test of previous resistance at 77.34 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 Operation Twist Not Enough To Calm Markets Operation Twist For The Fed's Monetary Policy Maximum Intervention To Take Us To Crisis 2.0 USD In Demand After The Fed Implements Full-Blown Operation Twist Asia Session: Dollar Remains Firm FOMC "Operation Twist" Gets Underway FOMC: Operation Twist Federal Reserve Does the Twist to the Tune of $400 Billion FOMC Meeting Flash: Bernanke Does the Twist FOMC Does the "Twist", But Markets Respond With Risk-Off and USD Strength U.S. Fed Opts to Provide Increased Liquidity to the System Technical Highlights EURUSD - Bearish On Rallies Below 1.3602 Daily Forex Update: GBP/AUD The Daily Forecaster: AUDUSD The Daily Wave Analysis Currency Markets Rekindling US Dollar Strength After FOMC Statement