EU Session Bullet Report – FED ‘D’ Day arrives as markets rally

So the day has arrived where investors around the world will learn if the US Federal Reserve is to lift interest rates for the first time in almost a decade. While the probability that a hike will take place is high, it is by no means a certainty with the continued slump in oil prices, uninspiring global economic data and concerns over inflation still weighing on the minds of policy makers.

Overnight in the US and this morning in Asia, sentiment lifted as stock markets rallied ahead of tonight's announcement. Should we see a rate hike, it would signal the beginning of the end of a monetary policy that has supplied a tidal wave of liquidity to risk assets globally over recent years.

USD traded higher yesterday making large gains across the board, most notably against the GBP where the UK released less than inspiring consumer and producer price index data.

Oil & Gold remain under pressure, trading below intraday pivot levels despite modest gains yesterday.

As the excitement build towards tonights FOMC announcement (19:00 GMT), we have a barage of data in the build up that should make today, one of the most exciting and volatile days of the year providing traders with many opportunities.

We start off with manufacturing PMI data from across the Eurozone released between 08:00 – 09:00 GMT, followed by average earnings and claimant count data from the UK at 09:30 GMT to round off the mornings excitement. In the afternoon, building permits and housing starts at 13:30 GMT gets the ball rolling followed by manuafacturing PMI at 14:45 GMT. Oil inventories rounds off the afternoon at 15:30 GMT where we can all take a breather ahead of the big one at 19:00 GMT.

Traders should consider prudent risk management and have sufficient liquidity to compensate for extreme price fluctuations and consider the use of take profit and stop loss. Easy forex would like to remind its clients of its price promise with guaranteed stops on take profits and stop losses and free negative balance correction.

Trading quote of the day: Buy on the rumor, sell on the news. Alan Greenspan

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.0985
Likely scenario: short positions below 1.0985 with targets @ 1.09 & 1.0875 in extension.
Alternative scenario: above 1.0985 look for further upside with 1.1015 & 1.105 as targets.
Comment: even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.

GBP/USD
Pivot: 1.5135
Likely scenario: short positions below 1.5135 with targets @ 1.5025 & 1.499 in extension.
Alternative scenario: above 1.5135 look for further upside with 1.518 & 1.5205 as targets.
Comment: the RSI is mixed to bearish.

AUD/USD
Pivot: 0.7235
Likely scenario: short positions below 0.7235 with targets @ 0.7155 & 0.713 in extension.
Alternative scenario: above 0.7235 look for further upside with 0.728 & 0.731 as targets.
Comment: the upward potential is likely to be limited by the resistance at 0.7235.

USD/JPY
Pivot: 121.2
Likely scenario: long positions above 121.2 with targets @ 122.25 & 122.7 in extension.
Alternative scenario: below 121.2 look for further downside with 120.9 & 120.55 as targets.
Comment: the RSI is bullish and calls for further advance.

USD/CAD
Pivot: 1.3675
Likely scenario: long positions above 1.3675 with targets @ 1.378 & 1.383 in extension.
Alternative scenario: below 1.3675 look for further downside with 1.362 & 1.3565 as targets.
Comment: technically the RSI is above its neutrality area at 50.

USD/CHF
Pivot: 0.984
Likely scenario: long positions above 0.984 with targets @ 0.995 & 0.9985 in extension.
Alternative scenario: below 0.984 look for further downside with 0.9785 & 0.975 as targets.
Comment: the RSI is mixed to bullish.

GOLD
Pivot: 1067.7
Our preference: short positions below 1067.7 with targets @ 1058 & 1052 in extension.
Alternative scenario: above 1067.7 look for further upside with 1072 & 1077.5 as targets.
Comment: as long as 1067.7 is resistance, likely decline to 1058.

OIL
Pivot: 36.05
Likely scenario: long positions above 36.05 with targets @ 38.2 & 38.59 in extension.
Alternative scenario: below 36.05 look for further downside with 35.15 & 34.52 as targets.
Comment: the RSI is mixed to bullish.

DAX
Pivot: 10290
Likely scenario: long positions above 10290 with targets @ 10660 & 10830 in extension.
Alternative scenario: below 10290 look for further downside with 10120 & 9990 as targets.
Comment: the RSI is bullish and calls for further advance.