US Session Bullet Report - Volkswagen - a car giant behind the USD strength

The USD strikes back across the board. This sentence pretty much sums up the picture we have seen so far. So what it was a lackluster day with no economic releases scheduled? The Volkswagen scandal in the USA where the auto giant is accused of manipulating car emission tests using a software, and the potential fine that it could face from US lawmakers, pushed the DAX -3% and along with it all other European stock indices. EURUSD revisited the lows of 1.1150 breaking the direct correlation that we saw in August (when stocks would rise, EURUSD would fall). With tomorrows ECB press conference that could hint more QE and the rate decision itself, we could see far more action in the EURUSD.

Credit Agricole states: This could diminish the EUR’s safe-haven appeal and allow other FX drivers play a greater role than before. In particular, we expect that the relative policy outlook could become a dominant force behind EUR/USD and EUR/GBP, pushing them lower yet again in the near-term.

In other markets, everything has surrendered to the USD with notable exception being the JPY.

Trading Quote of the Day:

“The basic concept that applies to both poker and trading is that the primary objects is not winning the most hands, but rather maximizing your gains.” - Jeff Yass

EURUSD
Pivot: 1.122
Likely scenario: Short positions below 1.122 with targets @ 1.115 & 1.112 in extension.
Alternative scenario: Above 1.122 look for further upside with 1.1255 & 1.132 as targets.
Comment: The pair has validated a bearish flag pattern and remains on the downside.

GBPUSD

Pivot: 1.553
Likely scenario: Short positions below 1.553 with targets @ 1.539 & 1.533 in extension.
Alternative scenario: Above 1.553 look for further upside with 1.557 & 1.561 as targets.
Comment: The RSI is badly directed.

AUDUSD

Pivot: 0.716
Likely scenario: Short positions below 0.716 with targets @ 0.706 & 0.703 in extension.
Alternative scenario: Above 0.716 look for further upside with 0.718 & 0.721 as targets.
Comment: The RSI is badly directed.

USDJPY

Pivot: 120.55
Likely scenario: Short positions below 120.55 with targets @ 119.7 & 119.35 in extension.
Alternative scenario: Above 120.55 look for further upside with 120.75 & 121 as targets.
Comment: The RSI is badly directed.

USDCAD

Pivot: 1.317
Likely scenario: Long positions above 1.317 with targets @ 1.331 & 1.335 in extension.
Alternative scenario: Below 1.317 look for further downside with 1.311 & 1.307 as targets.
Comment: The RSI is well directed.

USDCHF

Pivot: 0.969
Likely scenario: Long positions above 0.969 with targets @ 0.976 & 0.979 in extension.
Alternative scenario: Below 0.969 look for further downside with 0.9655 & 0.9625 as targets.
Comment: The RSI is mixed to bullish.

GOLD

Pivot: 1136
Likely scenario: Short positions below 1136 with targets @ 1124.5 & 1116 in extension.
Alternative scenario: Above 1136 look for further upside with 1142 & 1148 as targets.
Comment: The RSI is bearish and calls for further downside.

OIL

Pivot: 46.75
Likely scenario: Short positions below 46.75 with targets @ 45 & 44.24 in extension.
Alternative scenario: Above 46.75 look for further upside with 47 & 47.57 as targets.
Comment: The RSI is mixed with a bearish bias.

DAX

Pivot: 10025
Likely scenario: Short positions below 10025 with targets @ 9555 & 9435 in extension.
Alternative scenario: Above 10025 look for further upside with 10175 & 10340 as targets.
Comment: The RSI advocates for further downside.