EU Session Bullet Report – Super Thursday for the GBP

EU Session Bullet Report

Market focus is on BoE and the GBPUSD today. Bank of England meets to announce its interest rate decision, the inflation report and reveal the Banks minutes from the last meeting. GBPUSD is currently trading cautiously ahead of this important event. The pair has an immediate resistance at 1.5400/05 (round number/ 1h 50-SMA), above which 1.5442/50 (100-DMA/ psychological levels) would be tested.

After the relatively hawkish statement from the 28 October FOMC meeting and not least the fairly upbeat comments on the US economy from Jannet Yellen yesterday, today’s long list of speeches from FOMC member S.Fisher, Dudley, Tarullo and Lockhart will be watched closely.

Yesterday, hawkish comments from Fed members and upbeat economic data sparked a USD rally across the board. Gold hit a new monthly low at 1106 while EURUSD followed suit posting 1.0835 lows.

Trading Quote of the day:

Its better to lose your opinion, than to lose your money.

Green lines are resistance, Red lines are support

EUR/USD
Pivot: 1.091
Likely scenario: Short positions below 1.091 with targets @ 1.081 & 1.0775 in extension.
Alternative scenario: Above 1.091 look for further upside with 1.0945 & 1.0985 as targets.
Comment: The RSI is mixed to bearish.

GBP/USD
Pivot: 1.541
Likely scenario: Short positions below 1.541 with targets @ 1.5355 & 1.5305 in extension.
Alternative scenario: Above 1.541 look for further upside with 1.545 & 1.55 as targets.
Comment: The RSI is mixed to bearish.

AUD/USD
Pivot: 0.7175
Likely scenario: Short positions below 0.7175 with targets @ 0.712 & 0.709 in extension.
Alternative scenario: Above 0.7175 look for further upside with 0.72 & 0.7225 as targets.
Comment: As long as 0.7175 is resistance, look for choppy price action with a bearish bias.

USD/JPY
Pivot: 121.1
Likely scenario: Long positions above 121.1 with targets @ 121.8 & 122 in extension.
Alternative scenario: Below 121.1 look for further downside with 120.9 & 120.55 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USD/CAD
Pivot: 1.311
Likely scenario: Long positions above 1.311 with targets @ 1.319 & 1.324 in extension.
Alternative scenario: Below 1.311 look for further downside with 1.3075 & 1.3035 as targets.
Comment: Technically the RSI is above its neutrality area at 50.

USD/CHF
Pivot: 0.988
Likely scenario: Long positions above 0.988 with targets @ 0.996 & 1 in extension.
Alternative scenario: Below 0.988 look for further downside with 0.984 & 0.9815 as targets.
Comment: The RSI is mixed to bullish.

GOLD
Pivot: 1123
Likely scenario: Short positions below 1123 with targets @ 1098 & 1088 in extension.
Alternative scenario: Above 1123 look for further upside with 1132.5 & 1138 as targets.
Comment: As long as 1123 is resistance, likely decline to 1098.

OIL
Pivot: 47.42
Likely scenario: Short positions below 47.42 with targets @ 46 & 45.55 in extension.
Alternative scenario: Above 47.42 look for further upside with 48.28 & 48.92 as targets.
Comment: As long as 47.42 is resistance, likely decline to 46.

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 lacks downward momentum.