USD remains strong as the new week starts. Last week USD was broadly demanded after NFP report solidified the case for a December Rate hike after posting a solid 281k job additions instead of 180k expected. Such probability is now at 80% up from 50% before the report, which explains the USD strength. The stronger USD explains also the knockout of commodities such as GOLD which fell close to its lowest point in 5.5 years as well as OIL.

This week, a light economic calendar that its highlight is mainly US retail Sales on Friday, Dollar strength is most likely set to continue, unless some surprises occur.

The Day starts with German Trade balance data, next there is Eurozone Investor Confidence numbers, and later Canada releases Housing Starts.

Trading Quote of the day:

“Markets are never wrong – opinions often are”

– Jesse Livermore (American stock trader of the 1920s).

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.083
Likley scenario: Short positions below 1.083 with targets @ 1.068 & 1.0625 in extension.
Alternative scenario: Above 1.083 look for further upside with 1.088 & 1.091 as targets.
Comment: As long as 1.083 is resistance, likely decline to 1.068.

GBP/USD
Pivot: 1.515
Likley scenario: Short positions below 1.515 with targets @ 1.4975 & 1.487 in extension.
Alternative scenario: Above 1.515 look for further upside with 1.522 & 1.5275 as targets.
Comment: As long as the resistance at 1.515 is not surpassed, the risk of the break below 1.4975 remains high.

AUD/USD
Pivot: 0.712
Likley scenario: Short positions below 0.712 with targets @ 0.702 & 0.6975 in extension.
Alternative scenario: Above 0.712 look for further upside with 0.7175 & 0.72 as targets.
Comment: As long as the resistance at 0.712 is not surpassed, the risk of the break below 0.702 remains high.

USD/JPY
Pivot: 122.2
Likley scenario: Long positions above 122.2 with targets @ 123.6 & 124 in extension.
Alternative scenario: Below 122.2 look for further downside with 121.75 & 121.35 as targets.
Comment: Technically the RSI is above its neutrality area at 50.

USD/CAD
Pivot: 1.318
Likley scenario: Long positions above 1.318 with targets @ 1.332 & 1.3355 in extension.
Alternative scenario: Below 1.318 look for further downside with 1.3135 & 1.311 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USD/CHF
Pivot: 0.998
Likley scenario: Long positions above 0.998 with targets @ 1.008 & 1.0125 in extension.
Alternative scenario: Below 0.998 look for further downside with 0.9945 & 0.9915 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GOLD
Pivot: 1103
Likley scenario: Short positions below 1103 with targets @ 1083 & 1079 in extension.
Alternative scenario: Above 1103 look for further upside with 1111 & 1121 as targets.
Comment: As long as 1103 is resistance, likely decline to 1083.

OIL
Pivot: 45.65
Likley scenario: Short positions below 45.65 with targets @ 43.91 & 43.48 in extension.
Alternative scenario: Above 45.65 look for further upside with 46.13 & 46.65 as targets.
Comment: As long as 45.65 is resistance, likely decline to 43.91.

DAX
Pivot: 10680
Likely scenario: Long positions above 10680 with targets @ 11060 & 11145 in extension.
Alternative scenario: Below 10680 look for further downside with 10460 & 10280 as targets.
Comment: The RSI is bullish and calls for further upside.

TIME IS IN GMT(+3)