The USD exhibited its dominance yesterday after the FED signaled the possibility of a December Rate hike. Chances have now risen to almost 50% from a near impossibility priced in a few days ago. This explains the surge in the USD index to 97.81 from 96.46 yesterday. While EURUSD was rising before the FOMC statement, it fell 180 pips from 1.1075 to 1.0895 post statement. Along with it Gold also had a spectacular drop of $28 or 2.3% to $1152 (2 week low). The same picture was seen in all currencies such as USDCHF which pulled its way to a 7 month high and GBPUSD which posted a 2 week low. Meanwhile USDJPY erased most of its gains as the Yen gained after domestic data showed industrial output rose 1% far outpacing the fall of 0.5% that was expected.

The move might be perceived as a bit overstretched since the actual decision on whether to raise rates or not in December will be completely data dependent. Looking forward, for today the key economic releases include USD GDP and EU consumer/economic confidence.

Trading Quote of the Day:

“Traders want to perceive themselves as winners, but the successful trader should be focusing on their losses”.
Nima Siar

Green lines are resistance, Red lines are support

EUR/USD
Pivot: 1.1
Likely scenario: Short positions below 1.1 with targets @ 1.0885 & 1.084 in extension.
Alternative scenario: Above 1.1 look for further upside with 1.105 & 1.11 as targets.
Comment: The RSI lacks upward momentum.

GBP/USD
Pivot: 1.5315
Likely scenario: Short positions below 1.5315 with targets @ 1.523 & 1.52 in extension.
Alternative scenario: Above 1.5315 look for further upside with 1.5345 & 1.538 as targets.
Comment: The RSI is bearish and calls for further decline.

AUD/USD
Pivot: 0.716
Likely scenario: Short positions below 0.716 with targets @ 0.7075 & 0.705 in extension.
Alternative scenario: Above 0.716 look for further upside with 0.72 & 0.723 as targets.
Comment: The RSI is mixed to bearish.

USD/JPY
Pivot: 120.45
Likely scenario: Long positions above 120.45 with targets @ 121.25 & 121.5 in extension.
Alternative scenario: Below 120.45 look for further downside with 120.15 & 119.95 as targets.
Comment: The RSI is mixed to bearish.

USD/CAD
Pivot: 1.317
Likely scenario: Long positions above 1.317 with targets @ 1.3245 & 1.328 in extension.
Alternative scenario: Below 1.317 look for further downside with 1.315 & 1.3115 as targets.
Comment: The RSI is well directed.

USD/CHF
Pivot: 0.988
Likely scenraio: Long positions above 0.988 with targets @ 0.996 & 1 in extension.
Alternative scenario: Below 0.988 look for further downside with 0.9815 & 0.9755 as targets.
Comment: The RSI is mixed to bullish.llish flag and remains on the upside.

GOLD
Pivot: 1152
Likely scenario: Long positions above 1152 with targets @ 1169 & 1175 in extension.
Alternative scenario: Below 1152 look for further downside with 1148 & 1144 as targets.
Comment: The RSI is mixed.

OIL
Pivot: 43
Likely scenario: Long positions above 44.3 with targets @ 46.7 & 47.27 in extension.
Alternative scenario: Below 44.3 look for further downside with 43.75 & 43.25 as targets.
Comment: The RSI is mixed.

DAX
Pivot: 9380
Likely scenario: As long as 9380 is not broken down, we favour an upmove with 10200 and then 10500 as next targets.
Alternative scenario: Below 9380 expect a drop to 9115 and 8900.
Comment: The immediate trend remains up and the momentum is strong.