| Action Insight Mid-Day Report | Dollar Lower as Bernanke Plays Down Rate Hike Speculation Dollar is a touch softer today against most major currencies as Bernanke starts his two days semiannual testimony to congress. In his prepared speech, Bernanke said that low interest rates are still required as US economy is in a "nascent" recovery. He said that sustained recovery will depend on "continued growth in private-sector final demand for goods and service," while are growing at moderate pace only. Fed wills tart to tighten policy "at some point" but Fed anticipates " low rates of resource utilization, subdued inflation trends, and stable inflation expectations" to keep rates low for "an extended period." Full Report Here... | | Special Report | 2010 Currency Outlook: CAD Trade-weighted Canadian dollar rallied +16% in 2009 as driven by broad-based rallies in commodity currencies, including Australian dollar and New Zealand. However, unlike other commodity exporter economy, Canada's policy rate has been staying at exceptionally low level, at 0.25%, for most of the time in 2009. We expect the Bank of Canada will be a laggard in removing its stimulus measures compared with other commodity currencies as well as the dollar. However, upside risk to the currency is strength in oil price which should drive CAD higher. Thus, we expect USDCAD to be range-bounded, with low chance of striking parity, this year. Full Report Here... | | Candlesticks & Ichimoku Analysis | Trade Idea: GBP/USD - Sell at 1.5575 As cable has continued to trade in narrow range after yesterdays sharp retreat from 1.5575, suggesting further consolidation would take place but said resistance should cap sterlings upside and bearishness remains for a retest of support at 1.5345, however, break there is needed to confirm recent decline has resumed and extend weakness to 1.5295/00 and then 1.5272 (50% Fibonacci retracement of 1.3500 to 1.7044). Having said that, loss of downward momentum would limit downside and reckon 1.5245 (61.8% projection of 1.6459 to 1.5535 measuring from 1.5816) would hold on first testing. Full Report Here... Trade Idea: USD/CHF - Buy at 1.0735 As the greenback retreated after faltering below yesterdays high at 1.0849, suggesting further consolidation would take place, however, 1.0715-19 (yesterdays low and current level of the Ichimoku cloud bottom) should contain downside and bring another rebound, a firm breach of said resistance would confirm correction from 1.0899 has ended and bring resumption of recent upmove from 2009 low of 0.9910 towards 1.0939 (50% Fibonacci retracement of 1.1967 to 0.9910) and possibly 1.0970 before correction. Full Report Here... | | Featured Technical Report | Market Highlights | USD/CHF Mid-Day Outlook Daily Pivots: (S1) 1.0753; (P) 1.0800; (R1) 1.0887; More. With 4 hours MACD crossed below signal line, intraday bias is turned neutral again and consolidations from 1.0897 might extend further. Below 1.0714 minor support indicate that a short term top is in place at 1.0897 on bearish divergence condition in 4 hours MACD and RSI. In such case, bring deeper pull back should be seen to 1.0608 support and below before another rally. On the upside, though, break of 1.0897 will confirm that recent rally has resumed. Also, note that sustained trading above medium term trend line resistance (now at 1.0864) will pave the way to 161.8% projection of 0.9916 to 1.0506 from 1.0131 at 1.1086 next. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | USDCHF | 1.0760 | 1.0839 | -79 | -0.73% | | EURUSD | 1.3602 | 1.3507 | +95 | +0.70% | | GBPCHF | 1.6618 | 1.6719 | -101 | -0.61% | | EURGBP | 0.8807 | 0.8757 | +50 | +0.57% | | EURAUD | 1.5237 | 1.5152 | +85 | +0.56% | Last Updated: Feb 24, 15:45 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Feb 24, 15:45 GMT | | Economic Indicators Update | | GMT | Ccy | Events | Actual | Consensus | Previous | Revised | | 23:50 | JPY | Trade Balance (JPY) Jan | 0.73T | 0.51T | 0.52T | 0.66T | | 23:50 | JPY | CSPI Y/Y Jan | -1.00% | -1.10% | -1.50% | | | 07:00 | EUR | German GDP Q/Q Q4 F | 0.00% | 0.00% | 0.00% | | | 07:00 | EUR | German GfK Consumer Confidence Mar | 3.2 | 3 | 3.2 | 3.3 | | 10:00 | EUR | Eurozone Industrial New Orders M/M Dec | 0.80% | -1.00% | 1.60% | 2.70% | | 10:00 | EUR | Eurozone Industrial New Orders Y/Y Dec | 9.50% | 7.60% | -0.50% | -0.60% | | 15:00 | USD | New Home Sales Jan | 309K | 351K | 342K | | | 15:00 | USD | Fed's Bernanke Testimony | | -- | -- | | | 15:30 | USD | Crude Oil Inventories | 3.0M | 1.8M | 3.1M | | | | Suggested Readings | Fundamental Highlights Technical Highlights | | | Forex Brokers | | | Sponsors |  The World MoneyShow Hong Kong, April 21-23, 2010 at the Grand Hyatt Hong Kong! You'll meet legendary investment experts Steve Forbes, Mark Mobius, Marc Faber, Alexander Elder, John Bollinger, and many others. You will hear and profit from the experts' in-depth insights into global macroeconomics, equities, futures, forex, asset allocation, and more! Conference details and Registration! 
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