EU Session Bullet Report – USD trades steady ahead of NFP

EU Session Bullet Report

USD is trading stable against all pairs ahead of the long awaited NFP report today. Last week, Janet Yellen said that “if the incoming information supports that expectation then our statement indicates that December would be a live possibility” in regards to raising interest rates for the first time in a decade. NFP data should support the view or not. Currently there is a 58% probability that the FED will raise rates in December but that can all change depending on the news this afternoon.

Economists expect the report to show 180k jobs created in the US in October, up from last month’s 142k. Prior employment data this week, suggest for a strong report today.

Yesterday the GBPUSD was the weakest currency, and is currently posting new lows at 1.5188. BoE forecasted a lower growth and inflation target, despite upbeat economic data lately in the UK.

On the data front, Germany will release industrial production. UK will release industrial and manufacturing production and trade balance. US will release NFP and Canada will release both employment and building permits.

Trading Quote of the Day:

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.091
Likely scenario: Short positions below 1.091 with targets @ 1.083 & 1.081 in extension.
Alternative scenario: Above 1.091 look for further upside with 1.0945 & 1.0985 as targets.
Comment: As long as the resistance at 1.091 is not surpassed, the risk of the break below 1.083 remains high.

GBP/USD
Pivot: 1.5275
Likely scenario: Short positions below 1.5275 with targets @ 1.518 & 1.514 in extension.
Alternative scenario: Above 1.5275 look for further upside with 1.533 & 1.537 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 the resistance at 0.7175 is not surpassed, the risk of the break below 0.712 remains high.

USD/JPY
Pivot: 121.35
Likely scenario: Long positions above 121.35 with targets @ 122 & 122.45 in extension.
Alternative scenario: Below 121.35 look for further downside with 121.1 & 120.9 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: The RSI is mixed to bullish.

USD/CHF
Pivot: 0.9915
Likely scenario: Long positions above 0.9915 with targets @ 1 & 1.003 in extension.
Alternative scenario: Below 0.9915 look for further downside with 0.988 & 0.984 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GOLD
Pivot: 1114
Likely scenario: Short positions below 1114 with targets @ 1098 & 1093 in extension.
Alternative scenario: Above 1114 look for further upside with 1121 & 1130 as targets.
Comment: As long as 1114 is resistance, likely decline to 1098.

OIL
Pivot: 46.19
Likely scenario: Short positions below 46.19 with targets @ 44.88 & 44.44 in extension.
Alternative scenario: Above 46.19 look for further upside with 46.65 & 47.16 as targets.
Comment: As long as 46.19 is resistance, likely decline to 44.88.

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 around its neutrality area at 50%