EU Session Bullet Report

Overnight, FX markets were very quiet as markets await for the ECB decision later today. EUR/USD continues to trade trendless along with most of FX pairs. Exception yesterday was the USD/CAD which strengthened following Bank of Canada downward revision of the Country’s GDP and from lower OIL prices. Bank of Canada held the overnight rate unchanged at 0.50% as widely expected and maintained a neutral stance.

Stocks overnight in Asia, were also mixed. Nikkei fell from yesterday’s highs after expectations of further easing from Bank of Japan had previously taken the index higher. UK is releasing retail sales today which are expected to rebound after disappointing in July and August. The main event of the day is the ECB meeting. Pressure is building for further easing however, it is not expected that ECB President Mario Draghi will pull the trigger for that today.

Trading Quote of the Day:

To get Rich, you have to be making money while you are asleep

Green lines are resistance, Red lines are support EUR/USD

EUR/USD
Pivot: 1.1395
Likely scenario: Short positions below 1.1395 with targets @ 1.1305 & 1.1265 in extension.
Alternative scenario: Above 1.1395 look for further upside with 1.145 & 1.1495 as targets.
Comment: As long as 1.1395 is resistance, look for choppy price action with a bearish bias.

GBP/USD
Pivot: 1.541
Likely scenario: Long positions above 1.541 with targets @ 1.548 & 1.551 in extension.
Alternative scenario: Below 1.541 look for further downside with 1.537 & 1.5325 as targets.
Comment: The RSI is mixed and calls for caution.

AUD/USD
Pivot: 0.7275
Likely scenario: Short positions below 0.7275 with targets @ 0.716 & 0.714 in extension.
Alternative scenario: Above 0.7275 look for further upside with 0.7305 & 0.7345 as targets.
Comment: The RSI is mixed to bearish.

USD/JPY
Pivot: 119.55
Likely scenario: Long positions above 119.55 with targets @ 120.15 & 120.35 in extension.
Alternative scenario: Below 119.55 look for further downside with 119.2 & 118.9 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USD/CAD
Pivot: 1.305
Likely scenario: Long positions above 1.305 with targets @ 1.318 & 1.322 in extension.
Alternative scenario: Below 1.305 look for further downside with 1.2985 & 1.293 as targets.
Comment: The RSI is well directed.

USD/CHF
Pivot: 0.9545
Likely scenario: Long positions above 0.9545 with targets @ 0.9615 & 0.9645 in extension.
Alternative scenario: Below 0.9545 look for further downside with 0.9525 & 0.95 as targets.
Comment: Technically the RSI is above its neutrality area at 50.

GOLD
Pivot: 1172
Likely scenario: Short positions below 1172 with targets @ 1161 & 1156 in extension.
Alternative scenario: Above 1172 look for further upside with 1181 & 1184.5 as targets.
Comment: As long as 1172 is resistance, likely decline to 1161.

OIL
Pivot: 45.8
Likely scenario: Short positions below 45.8 with targets @ 44.85 & 44.45 in extension.
Alternative scenario: Above 45.8 look for further upside with 46.4 & 46.95 as targets.
Comment: As long as 45.8 is resistance, likely decline to 44.85.

DAX
Pivot: 10300
Likely scenario: Short positions below 10300 with targets @ 10050 & 9970 in extension.
Alternative scenario: Above 10300 look for further upside with 10340 & 10385 as targets.
Comment: As long as the resistance at 10300 is not surpassed, the risk of the break below 10050 remains high.