EU Session Bullet Report – Upbeat Mood Pegged Back By Poor Data From Asia

US stock markets were unable to maintain recent solid gains and closed Wednesday giving back more than half the gains made on Tuesday.

In Asia this morning, stock markets are trading lower after poor economic data from China and Japan dampened the optimism of the last few days, again heightening concerns over slackening global growth.

In Australia, positive employment data, as 17.4k jobs were added for September versus 5.2k forecast, an increase for the 4th consecutive month. As a result, unemployment fell to 6.2% and the AUDUSD is back trading above 0.7000 perhaps paving the way to a larger rebound.

Early USD strength witnessed yesterday morning was also short lived and quickly fell back to previous levels and remains under pressure.

Gold suffered its biggest daily loss in almost 2 weeks as it plunged as low 1101.13. It has since recovered slightly and is now trading around the 1106.50 mark although it remains in no mans land.

News wise, we have a quiet calendar from mainland EU although watch out for some key news from the UK. At 11:00 GMT we have the BoE rate announcement and votes so will be interesting to see if there is any change in opinion as to a rate increase.

Later in the afternoon we also have Unemployment claims from the US.

Trading quote of the day:

“Markets can remain irrational longer than you can remain solvent.”

– John Maynard Keynes

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EURUSD
Pivot: 1.1185
Likely scenario: Long positions above 1.1185 with targets @ 1.126 & 1.129 in extension.
Alternative scenario: Below 1.1185 look for further downside with 1.113 & 1.109 as targets.
Comment: Technically the RSI is above its neutrality area at 50.
 

GBPUSD
Pivot: 1.532
Likely scenario: Long positions above 1.532 with targets @ 1.541 & 1.544 in extension.
Alternative scenario: Below 1.532 look for further downside with 1.529 & 1.5265 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
 

AUDUSD
Pivot: 0.703
Likely scenario: Short positions below 0.703 with targets @ 0.695 & 0.692 in extension.
Alternative scenario: Above 0.703 look for further upside with 0.7065 & 0.71 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
 

USDJPY
Pivot: 119.9
Likely scenario: Long positions above 119.9 with targets @ 121.2 & 121.75 in extension.
Alternative scenario: Below 119.9 look for further downside with 119.6 & 119.2 as targets.
Comment: The RSI is well directed.
 

USDCAD
Pivot: 1.3205
Likely scenario: Long positions above 1.3205 with targets @ 1.331 & 1.334 in extension.
Alternative scenario: Below 1.3205 look for further downside with 1.3175 & 1.315 as targets.
Comment: Technically the RSI is above its neutrality area at 50.
 

USDCHF
Pivot: 0.9785
Likely scenario: Short positions below 0.9785 with targets @ 0.973 & 0.97 in extension.
Alternative scenario: Above 0.9785 look for further upside with 0.9825 & 0.9855 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
 

GOLD
Pivot: 1116
Likely scenario: Short positions below 1116 with targets @ 1094 & 1085 in extension.
Alternative scenario: Above 1116 look for further upside with 1126 & 1130.7 as targets.
Comment: Technically the RSI is below its neutrality area at 50.
 

OIL
Pivot: 46.4
Likely scenario: Short positions below 46.4 with targets @ 43.2 & 41.75 in extension.
Alternative scenario: Above 46.4 look for further upside with 47.25 & 48.45 as targets.
Comment: As long as 46.4 is resistance, likely decline to 43.2.
 

DAX
Pivot: 10120
Likely scenario: Long positions above 10120 with targets @ 10525 & 10650 in extension.
Alternative scenario: Below 10120 look for further downside with 9881 & 9700 as targets.
Comment: The RSI lacks downward momentum.
 

 

TIME IS IN GMT(+3)
Report prepared by the easy-forex VIP desk at 06:35 GMT.