Although the FX markets were relatively stable overnight, once again the Chinese stock markets were heavily sold off despite the government’s efforts to revive investors’ confidence. Shanghai composite is trading down more than 3% with other stock indices down as much as 7%.

EURUSD slipped lower to 1.1030 where it’s trading right now. It tried to break 1.10 multiple times so far but it was unable to do so. A possible break could bring the pair down to 1.0955 (Sundays Low)

AUDUSD and NZDUSD also faced some pressure overnight, although GOLD has remained more or less steady around $1168.
Looking ahead, Greece is expected to present a fresh bailout proposal at an emergency summit in Brussels today. On the data front, Swiss will release unemployment rate and foreign currency reserves. UK and Germany will release industrial production.

Trading Quote of the Day:

“We’d rather be on the outside wishing we were in, than on the inside wishing we were out.” Ken Long

Green lines are resistance, Red lines are support

EURUSD

Pivot: 1.1085

Likely scenario: Short positions below 1.1085 with targets @ 1.098 & 1.095 in extension.

Alternative scenario: Above 1.1085 look for further upside with 1.112 & 1.1155 as targets.

Comment: As long as 1.1085 is resistance, likely decline to 1.098.

GBPUSD

Pivot: 1.553

Likely scenario: Long positions above 1.553 with targets @ 1.5645 & 1.568 in extension.

Alternative scenario: Below 1.553 look for further downside with 1.5485 & 1.5425 as targets.

Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

AUDUSD

Pivot: 0.7535

Likely scenario: Short positions below 0.7535 with targets @ 0.746 & 0.74 in extension.

Alternative scenario: Above 0.7535 look for further upside with 0.7595 & 0.765 as targets.

Comment: A break below 0.746 would trigger a drop towards 0.74.

USDJPY

Pivot: 122.9

Likely scenario: Short positions below 122.9 with targets @ 122.15 & 121.83 in extension.

Alternative scenario: Above 122.9 look for further upside with 123.35 & 123.7 as targets.

Comment: The upward potential is likely to be limited by the resistance at 122.9.

USDCAD

Pivot: 1.2615

Likely scenario: Long positions above 1.2615 with targets @ 1.2695 & 1.274 in extension.

Alternative scenario: Below 1.2615 look for further downside with 1.256 & 1.2535 as targets.

Comment: The RSI is bullish and calls for further upside.

USDCHF

Pivot: 0.941

Likely scenario: Long positions above 0.941 with targets @ 0.947 & 0.95 in extension.

Alternative scenario: Below 0.941 look for further downside with 0.939 & 0.936 as targets.

Comment: A support base at 0.941 has formed and has allowed for a temporary stabilisation.

GOLD

Pivot: 1163

Likely scenario: Long positions above 1163 with targets @ 1175 & 1180.5 in extension.

Alternative scenario: Below 1163 look for further downside with 1156.3 & 1153 as targets.

Comment: A support base at 1163 has formed and has allowed for a temporary stabilisation.

OIL

Pivot: 55.2

Likely scenario: Short positions below 55.2 with targets @ 51.85 & 50.58 in extension.

Alternative scenario: Above 55.2 look for further upside with 56.25 & 56.74 as targets.

Comment: As long as 55.2 is resistance, likely decline to 51.85.

DAX

Pivot: 11130

Likely scenario: Short positions below 11130 with targets @ 10725 & 10535 in extension.

Alternative scenario: Above 11130 look for further upside with 11285 & 11380 as targets.

Comment: As long as 11130 is resistance, look for choppy price action with a bearish bias.