US Session Bullet Report - The Bullet is back, and USD strength is back with it

EURUSD fell sharply to 1.0910 from nearly 1.10 despite data showing that USD trade deficit widened in November. For now, the main driver of markets continues to be the oil prices (+2%). When they rise, Stock markets do to, which generally strengthens the USD. GBPUSD posted new 8 month lows today falling as low as 1.4790 in the USD led rally that saw also GOLD make an interim low at 1068.30. Higher oil prices have helped also boost the value of currencies of OIL exporting countries such as the CAD. USDCAD turned lower after hitting a 1-week high of 1.3939 and dropped all the way toward to a marginal new low of 1.3860. Still though, it remains near an 11-year high of 1.4000 struck on December 18. With no major news and thin trading volume ahead of the New Year holiday, moves can be exaggerated with no clear catalyst behind them. 

Trading quote of the day: “An investment in knowledge pays the best interest.” Benjamin Franklin

Green lines are resistance, Red lines are support.

EUR/USD

Pivot: 1.094

Likely scenario: long positions above 1.094 with targets @ 1.101 & 1.103 in extension.

Alternative scenario: below 1.094 look for further downside with 1.09 & 1.0865 as targets.

Comment: the RSI is mixed to bullish.

GBP/USD

Pivot: 1.4915

Likely scenario: short positions below 1.4915 with targets @ 1.4805 & 1.476 in extension.

Alternative scenario: above 1.4915 look for further upside with 1.4945 & 1.4985 as targets.

Comment: the RSI is badly directed.

AUD/USD

Pivot: 0.724

Likely scenario: long positions above 0.724 with targets @ 0.7285 & 0.7315 in extension.

Alternative scenario: below 0.724 look for further downside with 0.7205 & 0.718 as targets.

Comment: the RSI is mixed to bullish.

USD/JPY

Pivot: 120.75

Likely scenario: short positions below 120.75 with targets @ 120 & 119.8 in extension.

Alternative scenario: above 120.75 look for further upside with 121 & 121.3 as targets.

Comment: as long as 120.75 is resistance, look for choppy price action with a bearish bias.

USD/CAD

Pivot: 1.386

Likely scenario: long positions above 1.386 with targets @ 1.395 & 1.3995 in extension.

Alternative scenario: below 1.386 look for further downside with 1.383 & 1.38 as targets.

Comment: the RSI is well directed.

GOLD

Pivot: 1068

Likely scenario: long positions above 1068 with targets @ 1074 & 1077 in extension.

Alternative scenario: below 1068 look for further downside with 1066 & 1064 as targets.

Comment: the RSI is mixed and calls for caution.

OIL

Pivot: 36.65

Likely scenario: long positions above 36.65 with targets @ 37.96 & 38.28 in extension.

Alternative scenario: below 36.65 look for further downside with 36.3 & 36.1 as targets.

Comment: the RSI is bullish and calls for further advance.

DAX

Pivot: 10625

Likely scenario: long positions above 10625 with targets @ 10940 & 11020 in extension.

Alternative scenario: below 10625 look for further downside with 10530 & 10400 as targets.

Comment: the RSI is bullish and calls for further advance.