US Session Bullet Report

European stocks continued their recovery today following the bloodbath of the last week or so and look set to record their third consecutive day of gains.

At time of writing the German DAX is trading above 10300, a further 100 point gain on the day although still below its intraday pivot of 10440.

The greenback continues its fightback recording gains against EUR, GBP and JPY and was boosted further just now by better than expected GDP figures from the US coming in at 3.7 versus 3.2 expected and better jobless claims which came out at 271k versus 274k expected. With positive data comntinuing to flow out of the US, could we yet see the Fed raising its base rate sooner rather than later?

Oil is trading slightly higher on the day and is now just above $40 per barrel at time of writing with next resistance at $41.25 although continued growth concerns and lower Oil inventories are keeping pressure on the black gold.

Gold continues to be sold off and is now trading back below 1122 and seemingly on its way to wiping at last weeks gains. At 14:00 GMT we have pending home sales from the US which may add further confidence in the USD.

Trading quote of the day:

“Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.” – Peter Lynch

EURUSD
Pivot: 1.1395
Likely scenario: Short positions below 1.1395 with targets @ 1.1235 & 1.117 in extension.
Alternative scenario: Above 1.1395 look for further upside with 1.144 & 1.15 as targets.
Comment: The RSI is badly directed.

GBPUSD

Pivot: 1.555
Likely scenario: Short positions below 1.555 with targets @ 1.541 & 1.536 in extension.
Alternative scenario: Above 1.555 look for further upside with 1.56 & 1.565 as targets.
Comment: The RSI is capped by a declining trend line.

AUDUSD

Pivot: 0.7095
Likely scenario: Long positions above 0.7095 with targets @ 0.719 & 0.725 in extension.
Alternative scenario: Below 0.7095 look for further downside with 0.7065 & 0.704 as targets.
Comment: The RSI is well directed.

USDJPY

Pivot: 119.7
Likely scenario: Long positions above 119.7 with targets @ 120.7 & 121.3 in extension.
Alternative scenario: Below 119.7 look for further downside with 118.95 & 118.2 as targets.
Comment: The RSI is well directed.

USDCAD

Pivot: 1.3305
Likely scenario: Short positions below 1.3305 with targets @ 1.3145 & 1.311 in extension.
Alternative scenario: Above 1.3305 look for further upside with 1.3355 & 1.34 as targets.
Comment: The RSI is badly directed.

USDCHF

Pivot: 0.9455
Likely scenario: Long positions above 0.9455 with targets @ 0.955 & 0.959 in extension.
Alternative scenario: Below 0.9455 look for further downside with 0.941 & 0.9375 as targets.
Comment: The RSI is mixed to bullish.

GOLD

Pivot: 1135.2
Likely scenario: Short positions below 1135.2 with targets @ 1117 & 1109 in extension.
Alternative scenario: Above 1135.2 look for further upside with 1153 & 1163 as targets.
Comment: The RSI is capped by a bearish trend line.

OIL

Pivot: 39.35
Likely scenario: Long positions above 39.35 with targets @ 41.25 & 41.8 in extension.
Alternative scenario: Below 39.35 look for further downside with 38.5 & 37.75 as targets.
Comment: The RSI broke above a bearish trend line.

DAX

Pivot: 10440
Likely scenario: Short positions below 10440 with targets @ 9920 & 9780 in extension.
Alternative scenario: Above 10440 look for further upside with 10650 & 10735 as targets.
Comment: The RSI is mixed and calls for caution.