US Session Bullet Report

After the initial selloff of the USD following a dovish FED, which cited too many risks to the US economy stemming from global concerns (China), the greenback is regaining a lot of lost ground versus other currencies.

Hawkish comments from FED members after the announcement gave back the confidence to the market that a rate hike is still possible this year. For example, Fed’s Williams said that Thursday’s decision was a close call. Fed’s Bullard said that he was in favor for a rate hike on Thursday.

This illustrates that the FED is highly divided on a first rate hike. In Greece, the elections and its result do not look as if they will influence the direction of the EUR. Instead, focus turns to global growth threats (China) for indications that the volatility will subside – which eventually will be the trigger the FED is looking for to start raising rates. In other words, economic releases from China, might slowly become more important to the USD, rather than US economic releases.

All in all, the USD is trading at 1.1250 Vs the EUR, 120.50 Vs the JPY and $1130 for an ounce of gold.
14:00 GMT housing data from the US are next.

Trading quote of the day:

“You don`t need to be a weatherman to know which way the wind blows”  – Bob Dylan

EURUSD
Pivot: 1.133
Likely scenario: Short positions below 1.133 with targets @ 1.124 & 1.121 in extension.
Alternative scenario: Above 1.133 look for further upside with 1.1355 & 1.139 as targets.
Comment: The RSI is bearish and calls for further downside.

GBPUSD

Pivot: 1.559
Likely scenario: Short positions below 1.559 with targets @ 1.549 & 1.545 in extension.
Alternative scenario: Above 1.559 look for further upside with 1.566 & 1.572 as targets.
Comment: The RSI is badly directed.

AUDUSD

Pivot: 0.72
Likely scenario: Short positions below 0.72 with targets @ 0.714 & 0.712 in extension.
Alternative scenario: Above 0.72 look for further upside with 0.723 & 0.7275 as targets.
Comment: The RSI is badly directed.

USDJPY

Pivot: 119.65
Likely scenario: Long positions above 119.65 with targets @ 120.75 & 121 in extension.
Alternative scenario: Below 119.65 look for further downside with 119.35 & 119 as targets.
Comment: The RSI is well directed.

USDCAD

Pivot: 1.316
Likely scenario: Long positions above 1.316 with targets @ 1.325 & 1.331 in extension.
Alternative scenario: Below 1.316 look for further downside with 1.307 & 1.301 as targets.
Comment: The RSI is mixed to bullish.

USDCHF

Pivot: 0.9625
Likely scenario: Long positions above 0.9625 with targets @ 0.972 & 0.976 in extension.
Alternative scenario: Below 0.9625 look for further downside with 0.9585 & 0.956 as targets.
Comment: The RSI is well directed.

GOLD

Pivot: 1142
Likely scenario: Short positions below 1142 with targets @ 1124.5 & 1116 in extension.
Alternative scenario: Above 1142 look for further upside with 1148 & 1153 as targets.
Comment: The RSI is badly directed.

OIL

Pivot: 46.35
Likely scenario: Short positions below 46.35 with targets @ 44.24 & 43.55 in extension.
Alternative scenario: Above 46.35 look for further upside with 47.08 & 47.64 as targets.
Comment: As long as 46.35 is resistance, likely decline to 44.24.

DAX

Pivot: 10125
Likely scenario: Short positions below 10125 with targets @ 9780 & 9640 in extension.
Alternative scenario: Above 10125 look for further upside with 10340 & 10420 as targets.
Comment: The RSI is below its neutrality area at 50%