EU Session Bullet Report

The market focus today is on Bank of England rate decision and FOMC minutes release. In the UK, BoE is widely expected to keep rates unchanged at 0.5% and show that the 9 members voted for as 8-1 for keeping rates unchanged over hiking them. The MPC members should be positive about the domestic development (especially about the labor market) but slightly worried about the global market turmoil and the slowdown in China. FOMC minutes should express some concern over the global developments as signaled by the soft tone by Janet Yellen at the press conference following the meeting.

In currency markets, majors continue trading in a tight range especially USDJPY and EURUSD. Central Bank cues should be needed in order for the 2 pairs to break out of their range. Commodity currencies (CAD, AUD, NZD, NOK) are trading near their weekly highs, however the rally seems to have run out of steam.

WE shift our focus on FOMC and US jobless claims release for further direction.

Trading quote of the day:

All trading results are insignificant unless it is your last.

EURUSD
Pivot: 1.12
Likely scenario: Long positions above 1.12 with targets @ 1.1285 & 1.132 in extension.
Alternative scenario: Below 1.12 look for further downside with 1.117 & 1.1145 as targets.
Comment: The RSI is mixed with a bullish bias.

GBPUSD

Pivot: 1.525
Likely scenario: Long positions above 1.525 with targets @ 1.534 & 1.538 in extension.
Alternative scenario: Below 1.525 look for further downside with 1.521 & 1.518 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

AUDUSD

Pivot: 0.715
Likely scenario: Long positions above 0.715 with targets @ 0.7235 & 0.728 in extension.
Alternative scenario: Below 0.715 look for further downside with 0.711 & 0.707 as targets.

Comment: The RSI is mixed and calls for caution.

USDJPY

Pivot: 120.35
Likely scenario: Short positions below 120.35 with targets @ 119.75 & 119.45 in extension.
Alternative scenario: Above 120.35 look for further upside with 120.6 & 120.9 as targets.
Comment: As long as 120.35 is resistance, look for choppy price action with a bearish bias.

USDCAD

Pivot: 1.302
Likely scenario: Long positions above 1.302 with targets @ 1.31 & 1.314 in extension.
Alternative scenario: Below 1.302 look for further downside with 1.297 & 1.29 as targets.
Comment: The RSI is well directed.

USDCHF
Pivot: 0.9685
Likely scenario: Long positions above 0.9685 with targets @ 0.9765 & 0.9795 in extension.
Alternative scenario: Below 0.9685 look for further downside with 0.964 & 0.96 as targets.
Comment: The RSI is mixed to bullish.

GOLD

Pivot: 1142
Likely scenario: Long positions above 1142 with targets @ 1157 & 1165 in extension.
Alternative scenario: Below 1142 look for further downside with 1130 & 1122.5 as targets.
Comment: Intraday technical indicators are mixed and call for caution.

OIL

Pivot: 49.7
Likely scenario: Short positions below 49.7 with targets @ 47.4 & 46.9 in extension.
Alternative scenario: Above 49.7 look for further upside with 50.8 & 51.66 as targets.
Comment: As long as 49.7 is resistance, likely decline to 47.4.

DAX

Pivot: 10090
Likely scenario: Short positions below 10090 with targets @ 9670 & 9572 in extension.
Alternative scenario: Above 10090 look for further upside with 10220 & 10320 as targets.
Comment: The RSI is bearish and calls for further downside.