US Session Bullet Report

Eurozone stock markets are trading lower today as data released showed growth in the region had slowed during August.

The German DAX opened down more than 200 points this morning as the Asian selloff continued earlier today. The Japan225 was the biggest loser with the index trading down more than 750 points from its open. The Australian ASX also traded lower by some 100 points at time of writing.

The news was not all doom and gloom however. Unemployment in the Eurozone enexpectedly fell to its lowest level in 3 years falling to 10.9% from 11.1% the previous month.
With ECB policy makers set to meet on Thrusday, this will come as a good indicator that the region is on the mend. However, continued economic slowdown coupled with recent comments from IMF director Lagarde, warning that global growth will be weaker than forecast just two weeks ago will no doubt dampen the mood.

It seems that news is king at the moment with every new session throwing up its twists and turns. As improving data continues to flow from the US, again there is talk of a rate hike sooner rather than later.

At 14:00GMT we have important manufacturing data from the US. Better than expected figures will no doubt increase talk of an interest rate hike, although worse than expected figures could be the clearest indication yet that the global slowdown is starting to way on the US.

Trading quote of the day:

“It is not enough to have a good mind. The main thing is to use it well.”

– Rene Descartes

EURUSD
Pivot: 1.12
Likely scenario: Long positions above 1.12 with targets @ 1.135 & 1.14 in extension.
Alternative scenario: Below 1.12 look for further downside with 1.1155 & 1.11 as targets.
Comment: The RSI lacks downward momentum.

GBPUSD

Pivot: 1.5445
Likely scenario: Short positions below 1.5445 with targets @ 1.5265 & 1.521 in extension.
Alternative scenario: Above 1.5445 look for further upside with 1.55 & 1.557 as targets.
Comment: The RSI is badly directed.

AUDUSD

Pivot: 0.716
Likely scenario: Short positions below 0.716 with targets @ 0.704 & 0.7 in extension.
Alternative scenario: Above 0.716 look for further upside with 0.7205 & 0.725 as targets.
Comment: The RSI is badly directed.

USDJPY

Pivot: 120.65
Likely scenario: Short positions below 120.65 with targets @ 119.2 & 118.85 in extension.
Alternative scenario: Above 120.65 look for further upside with 121.05 & 121.4 as targets.
Comment: The RSI is badly directed.

USDCAD

Pivot: 1.3225
Likely scenario: Short positions below 1.3225 with targets @ 1.311 & 1.3055 in extension.
Alternative scenario: Above 1.3225 look for further upside with 1.3275 & 1.3325 as targets.
Comment: The RSI lacks upward momentum.

USDCHF

Pivot: 0.969
Likely scenario: Short positions below 0.969 with targets @ 0.955 & 0.9505 in extension.
Alternative scenario: Above 0.969 look for further upside with 0.973 & 0.978 as targets.
Comment: The RSI is mixed to bearish.

GOLD

Pivot: 1134
Likely scenario: Long positions above 1134 with targets @ 1146.5 & 1153 in extension.
Alternative scenario: Below 1134 look for further downside with 1125 & 1117 as targets.
Comment: The RSI is mixed with a bullish bias.

OIL

Pivot: 45
Likely scenario: Long positions above 45 with targets @ 49.4 & 52 in extension.
Alternative scenario: Below 45 look for further downside with 43.5 & 41.75 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

DAX

Pivot: 10440
Likely scenario: Short positions below 10440 with targets @ 9780 & 9645 in extension.
Alternative scenario: Above 10440 look for further upside with 10650 & 10735 as targets.
Comment: As long as 10440 is resistance, look for choppy price action with a bearish bias.