EU Session Bullet Report

Continued market selloff in Asia yesterday but also today (Nikkei -4.05)%, fueled by another round of negative Chinese trade data in combination with mixed messages from FED members as to a rates increase, sent the EURUSD soaring and commodities plunging. Meanwhile, Fed Chairwoman Yellen’s speech due tomorrow is eagerly awaited.
The risk aversion mode was created by news that Chinese industrial company’s profits fell to their lowest rate in 4 years, sparking fresh fears about the country’s strength. Wall Street indices were also sold off with S&P hitting a one month-low. Commodity currencies such as AUD/USD and USD/CAD suffered on the back of this as they are both countries that rely on Chinese demand.

In commodities, weak Chinese data was also the culprit that sent GOLD tumbling to 1126 from 1148 and oil to 44.40 as both commodities depend heavily on China.

Later in the day, German CPI will be closely watched for further clues on the major while US consumer confidence data will be key for the USD moves.

Trading quote of the day:

“Vision without action is a daydream. Action without vision is a nightmare.”

– Japanese proverb

EUR/USD
Pivot: 1.121
Likely scenario: Long positions above 1.121 with targets @ 1.1295 & 1.133 in extension.
Alternative scenario: Below 1.121 look for further downside with 1.1185 & 1.1145 as targets.
Comment: The RSI is bullish and calls for further upside.

GBP/USD
Pivot: 1.521
Likely scenario: Short positions below 1.521 with targets @ 1.513 & 1.509 in extension.
Alternative scenario: Above 1.521 look for further upside with 1.5245 & 1.5285 as targets.
Comment: The RSI lacks upward momentum.

AUD/USD
Pivot: 0.701
Likely scenario: Short positions below 0.701 with targets @ 0.6935 & 0.69 in extension.
Alternative scenario: Above 0.701 look for further upside with 0.7035 & 0.706 as targets.
Comment: A break below 0.6935 would trigger a drop towards 0.69.

USD/JPY
Pivot: 120
Likely scenario: Short positions below 120 with targets @ 119.2 & 119 in extension.
Alternative scenario: Above 120 look for further upside with 120.35 & 120.65 as targets.
Comment: The pair remains within a bearish channel.

USD/CAD
Pivot: 1.334
Likely scenario: Long positions above 1.334 with targets @ 1.3415 & 1.3445 in extension.
Alternative scenario: Below 1.334 look for further downside with 1.3295 & 1.3245 as targets.
Comment: The RSI is supported by a bullish trend line.

USD/CHF
Pivot: 0.9755
Likely scenario: Short positions below 0.9755 with targets @ 0.97 & 0.9665 in extension.
Alternative scenario: Above 0.9755 look for further upside with 0.9775 & 0.981 as targets.
Comment: The RSI is bearish and calls for further decline.

GOLD
Pivot: 1139
Likely scenario: Short positions below 1139 with targets @ 1128 & 1121 in extension.
Alternative scenario: Above 1139 look for further upside with 1148 & 1157 as targets.
Comment: As long as 1139 is resistance, likely decline to 1128.

OIL
Pivot: 45.3
Likely scenario: Short positions below 45.3 with targets @ 43.7 & 43.2 in extension.
Alternative scenario: Above 45.3 look for further upside with 45.75 & 46.4 as targets.
Comment: As long as 45.3 is resistance, likely decline to 43.7.

DAX
Pivot: 9780
Likely scenario: Short positions below 9780 with targets @ 9350 & 9235 in extension.
Alternative scenario: Above 9780 look for further upside with 10020 & 10175 as targets.
Comment: The RSI is bearish and calls for further decline.

TIME IS IN GMT(+3)

Report prepared by the easy-forex VIP desk at 06:20 GMT.