EU Session Bullet Report – Stock Market Rebound And USD Strength

EU Session Bullet Report

This morning RBA (Australia) kept interest rates unchanged at 2%. Although the decision was widely anticipated, AUDUSD advanced higher. OIL and commodity markets seems to be recovering which supports all the commodity currencies (CAD, AUD, NZD, and NOK). Rebound in the stock market is also evident with all major indices closing the day higher yesterday and things looking to pick up from where they left from last night. Asian stocks had their 5th winning day in a row.

Released from UK, PMI services dropped sharply to 53.3 to September, down from August’s 55.6. That’s way below expectation of a rise to 56.4. GBP/USD took a nosedive, and is the week’s weakest currency so far.

Today’s releases include Germany factory orders, and US trade balance data. ECB President Mario Draghi is also scheduled to talk later in the day.

Trading quote of the day:

funny thing about the stock market is that every time one buys, another person sells, and both think they are right.

“william Feather”

EUR/USD
Pivot: 1.1225
Likely scenario: Short positions below 1.1225 with targets @ 1.1145 & 1.1115 in extension.
Alternative scenario: Above 1.1225 look for further upside with 1.128 & 1.132 as targets.
Comment: The RSI advocates for further decline.

GBP/USD
Pivot: 1.52
Likely scenario: Short positions below 1.52 with targets @ 1.5105 & 1.508 in extension.
Alternative scenario: Above 1.52 look for further upside with 1.5245 & 1.529 as targets.
Comment: The RSI is mixed to bearish.

AUDUSD
Pivot: 0.7055
Likely scenario: Long positions above 0.7055 with targets @ 0.715 & 0.718 in extension.
Alternative scenario: Below 0.7055 look for further downside with 0.7035 & 0.7 as targets.
Comment: The RSI is well directed.

USDJPY
Pivot: 120.1
Likely scenario: Long positions above 120.1 with targets @ 120.65 & 120.9 in extension.
Alternative scenario: Below 120.1 look for further downside with 119.8 & 119.45 as targets.
Comment: The RSI is mixed to bullish.

USDCAD
Pivot: 1.314
Likely scenario: Short positions below 1.314 with targets @ 1.306 & 1.3 in extension.
Alternative scenario: Above 1.314 look for further upside with 1.318 & 1.321 as targets.
Comment: As long as the resistance at 1.314 is not surpassed, the risk of the break below 1.306 remains high.

USDCHF
Pivot: 0.972
Likely scenario: Long positions above 0.972 with targets @ 0.9795 & 0.9815 in extension.
Alternative scenario: Below 0.972 look for further downside with 0.968 & 0.964 as targets.
Comment: The RSI is mixed to bullish.

GOLD
Pivot: 1130
Likely scenario: Long positions above 1130 with targets @ 1142.3 & 1148.5 in extension.
Alternative scenario: Below 1130 look for further downside with 1122.5 & 1112 as targets.
Comment: A support base at 1130 has formed and has allowed for a temporary stabilisation.

OIL
Pivot: 45.8
Likely scenario: Long positions above 45.8 with targets @ 46.95 & 47.36 in extension.
Alternative scenario: Below 45.8 look for further downside with 45.2 & 44.3 as targets.
Comment: The RSI is mixed to bullish.

DAX
9380 is our pivot point.
Likely scenario: As long as 9380 is not broken down, we favor an upmove with 10200 and then 10500 as next targets.
Alternative scenario: below 9380 expect a drop to 9115 and 8900.
Comment: The RSI is around its neutrality area at 50%
Trend: ST limited rise; MT bullish.