ASIAN SESSION
A) CALENDAR
-GMT 00:30 JPN BOJ Governor Fukui to Speak at Branch Managers’ Meeting
-GMT 04:30 JPN Indus. production (m/m), (Aug) EST 3.4% PREVIOUS 3.4%
-GMT 04:30 JPN Indus. production (y/y), (Aug) EST 4.3% PREVIOUS 4.3%
Definition
Industrial production consists of the total output of a nation�s plants, utilities, and mines. From a fundamental point of view, it is an important economic indicator that reflects the strength of the economy, and by extrapolation, the strength of a specific currency.
-GMT 04:30 JPN Capacity Util. (Aug) EST % PREVIOUS 104.4%
Definition
Capacity utilization consists of total industrial output divided by total production capability. The term refers to the maximum level of output a plant can generate under normal business conditions. A normal �figure� for a steady economy is 81.5 percent. If the figure reads 85 percent or more, the data suggests that the industrial production is overheating, that the economy is close to full capacity. High capacity utilization rates precede inflation, and expectation in the foreign exchange market is that the central bank will raise interest rates in order to avoid or fight inflation.
B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4240 118.25 2.0420
R2 1.4205 118.00 2.0390
R1 1.4180 117.80 2.0370
S1 1.4160 117.45 2.0320
S2 1.4145 117.25 2.0295
S3 1.4120 116.95 2.0275
C) WATCH
-Interest Rates
-GMT 00:30 JPN BOJ Governor Fukui to Speak at Branch Managers’ Meeting
-GMT 04:30 JPN Indus. production
-GMT 04:30 JPN Capacity Util.
D) TRADING TIPS
The descending triangle is just a mirror image of the ascending, and is generally considered a bearish pattern. This pattern indicates that sellers are more aggressive than buyers and is usually resolved on the downside. The downside signal is registered by a decisive close under the lower trendline, usually on increased volume (trading noise). A return move sometimes occurs which should encounter resistance at the lower trendline.
