Newsletter 03/12/2007

akforex · December 2, 2007, 10:30am

ASIAN SESSION

A) CALENDAR

-GMT 01:00 JPN BOJ Governor Fukui to Meet With Business Leaders in Nagoya

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4700 112.00 2.0645
R2 1.4680 111.70 2.0625
R1 1.4645 111.35 2.0600
S1 1.4625 110.85 2.0560
S2 1.4580 110.65 2.0535
S3 1.4550 110.40 2.0505

C) WATCH
-Interest Rates

D) TRADING TIPS
CANDLESTICKS
Atekubi, irikubi and sashikomi are three varieties of the same pattern suggesting that weak rebound attempts via filling common gaps will not derail a solid decline.
The atekubi pattern, which is the most restrictive of the three, consists of a second-day white candlestick that closes at the daily high. The current closing price equals the previous declining day’s low. The atekubi candlestick suggests
selling.
The irikubi candlestick is a modified atekubi candlestick. All the characteristics are the same, except that the second day’s closing high is marginally higher than the original day’s low. The signal remains bearish. The sashikomi candlestick is, in turn, a modified irikubi candlestick. Therefore, all the characteristics are the same and the signal remains bearish. The difference is that the opening of the second day’s white candlestick is much lower than that of the irikubi candlesticks.
Despite the wider gap thus formed, the white candlestick closes just
above the previous day’s low.

akforex · December 3, 2007, 2:26am

EUROPEAN SESSION

A) CALENDAR

-GMT 08:55 GER Manufacturing PMI (Nov) EST 52.9 PREVIOUS 51.7
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

-GMT 09:00 EU Manufacturing PMI (Nov) EST 52.6 PREVIOUS 52.6
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

-GMT 09:30 UK Manufacturing PMI (Nov) EST 52.6 PREVIOUS 52.9
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

-GMT 09:30 EU ECB’s Trichet Speaks in Brussels

-GMT 10:00 EU Unemployment (Oct) EST 7.3% PREVIOUS 7.3%
Definition
The percentage of the people classified as unemployed as compared to the total labor force.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4780 111.35 2.0700
R2 1.4735 111.00 2.0670
R1 1.4710 110.65 2.0645
S1 1.4645 110.40 2.0600
S2 1.4625 110.15 2.0560
S3 1.4600 109.95 2.0545

C) WATCH
-Interest Rates
-GMT 09:00 EU Manufacturing PMI
-GMT 09:30 UK Manufacturing PMI
-GMT 10:00 EU Unemployment

D) TRADING TIPS
CANDLESTICKS
Atekubi, irikubi and sashikomi are three varieties of the same pattern suggesting that weak rebound attempts via filling common gaps will not derail a solid decline.
The atekubi pattern, which is the most restrictive of the three, consists of a second-day white candlestick that closes at the daily high. The current closing price equals the previous declining day’s low. The atekubi candlestick suggests
selling.
The irikubi candlestick is a modified atekubi candlestick. All the characteristics are the same, except that the second day’s closing high is marginally higher than the original day’s low. The signal remains bearish. The sashikomi candlestick is, in turn, a modified irikubi candlestick. Therefore, all the characteristics are the same and the signal remains bearish. The difference is that the opening of the second day’s white candlestick is much lower than that of the irikubi candlesticks.
Despite the wider gap thus formed, the white candlestick closes just
above the previous day’s low.

akforex · December 3, 2007, 5:58am

US SESSION

A) CALENDAR

-GMT 13:00 USA Fed’s Rosengren Speaks on Subprime Mortgages in Boston

-GMT 15:00 USA ISM Index (Nov) EST 66.0 PREVIOUS 63.0
Definition
The Institute for Supply Management (ISM) Index is a composite diffusion index of national manufacturing conditions. Readings above 50 percent indicate an expanding factory sector. The index is calculated from five of the eight sub-components of a monthly survey of purchasing managers at roughly 400 manufacturing firms representing 20 industries and all 50 states. The survey queries purchasing managers about the general direction of production, orders, inventories, employment, vendor deliveries and prices.

-GMT 15:00 USA ISM-Manufacturing EST 50.5 PREVIOUS 50.9
Definition
Also known as Non-Manufacturing ISM. This index is based on a survey of about 370 purchasing executives in industries of finance, insurance, real estate, communications, and utilities. It reports business activity in the service sector.

-GMT 19:00 EU ECB’s Bini Smaghi Speaks in Brussels

-GMT 20:30 USA Yellen Speaks in Seattle on US Outlook and Monetary Policy

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4735 111.20 2.0760
R2 1.4705 111.00 2.0700
R1 1.4680 110.75 2.0670
S1 1.4620 110.35 2.0600
S2 1.4600 110.15 2.0565
S3 1.4580 109.95 2.0525

C) WATCH
-Interest Rates
-GMT 15:00 USA ISM Index
-GMT 15:00 USA ISM-Manufacturing

D) TRADING TIPS
CANDLESTICKS
Atekubi, irikubi and sashikomi are three varieties of the same pattern suggesting that weak rebound attempts via filling common gaps will not derail a solid decline.
The atekubi pattern, which is the most restrictive of the three, consists of a second-day white candlestick that closes at the daily high. The current closing price equals the previous declining day’s low. The atekubi candlestick suggests
selling.
The irikubi candlestick is a modified atekubi candlestick. All the characteristics are the same, except that the second day’s closing high is marginally higher than the original day’s low. The signal remains bearish. The sashikomi candlestick is, in turn, a modified irikubi candlestick. Therefore, all the characteristics are the same and the signal remains bearish. The difference is that the opening of the second day’s white candlestick is much lower than that of the irikubi candlesticks.
Despite the wider gap thus formed, the white candlestick closes just
above the previous day’s low.