EU Session Bullet Report – RBA Holds, Gold Hits New 4 Week Lows

Overnight, RBA in Australia left rates unchanged at 2%. Governor Stevens said in a statement that the Board considered that prospects for improvement in the economy have strengthened over recent months and leaving the rate unchanged was an appropriate decision. AUD/USD last traded up 0.72% to settle at 0.7198, while NZD/USD dipped 0.01% to 0.6745. Overnight, the USD was mixed versus its most commonly traded counterparts, after reports showed manufacturing activity in the US grew at the slowest pace in more than 2 years in October.

Gold hit 4 week lows at 1132.50 as higher chances of raising rates are putting the metal under pressure. Silver and other metals too are under pressure since the rise in expectations for a December hike. Investor’s will shift their focus today to UK PMI and US Durable Goods. Tomorrow will feature the ADP employment report ahead of Friday’s all-important NFP.

Trading Quote of the Day: “Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic”  Warren Buffet

Green lines are resistance, Red lines are support

EUR/USD
Pivot: 1.0965
Likely scenario: Long positions above 1.0965 with targets @ 1.107 & 1.11 in extension.
Alternative scenario: Below 1.0965 look for further downside with 1.0935 & 1.0895 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

 

GBP/USD
Pivot: 1.5405
Likely scenario: Long positions above 1.5405 with targets @ 1.545 & 1.55 in extension.
Alternative scenario: Below 1.5405 look for further downside with 1.5375 & 1.5345 as targets.
Comment: A support base at 1.5405 has formed and has allowed for a temporary stabilisation.

 

AUD/USD
Pivot: 0.712
Likely scenario: Long positions above 0.712 with targets @ 0.7225 & 0.726 in extension.
Alternative scenario: Below 0.712 look for further downside with 0.7065 & 0.7015 as targets.
Comment: The RSI is well directed.

 

USD/JPY
Pivot: 120.45
Likely scenario: Long positions above 120.45 with targets @ 121.2 & 121.5 in extension.
Alternative scenario: Below 120.45 look for further downside with 120.2 & 119.95 as targets.
Comment: The RSI lacks downward momentum.

 

USD/CAD
Pivot: 1.313
Likely scenario: Short positions below 1.313 with targets @ 1.3035 & 1.299 in extension.
Alternative scenario: Above 1.313 look for further upside with 1.32 & 1.324 as targets.
Comment: The RSI is mixed to bearish.

 

USD/CHF
Pivot: 0.991
Likely scenario: Short positions below 0.991 with targets @ 0.9815 & 0.9755 in extension.
Alternative scenario: Above 0.991 look for further upside with 0.996 & 1 as targets.
Comment: As long as the resistance at 0.991 is not surpassed, the risk of the break below 0.9815 remains high.

 

GOLD
Pivot: 1129
Likely scenario: Long @ 1137.44 with targets @ 1143 & 1150 in extension.
Alternative scenario: Below 1129 look for further downside with 1125 & 1121 as targets.
Comment: Gold broke above the upper boundary of a declining channel, which confirms a positive view.

 

OIL
Pivot: 45.56
Likely scenario: Long positions above 45.56 with targets @ 47 & 47.6 in extension.
Alternative scenario: Below 45.56 look for further downside with 45.16 & 44.3 as targets.
Comment: A support base at 45.56 has formed and has allowed for a temporary stabilisation.

 

DAX
Pivot: 10680
Likely scenario: Long positions above 10680 with targets @ 11030 & 11145 in extension.
Alternative scenario: Below 10680 look for further downside with 10460 & 10280 as targets.
Comment: The RSI is bullish and calls for further upside.