EU Session Bullet Report – Deja-vous of 2007 stock market meltdown

1

Too many headlines and things going on in the global markets so here are the headlines and their implications for the meltdown of the USD and stock indices yesterday and overnight in Asia:

• Greek PM Tsipras resigns, paving the way for Greek snap elections.
• China August manufacturing activity drops to 6.5 year low causing demand for Safe haven assets such as GOLD which surged to $1168 from $1113 two days ago.
• Stocks and oil slump as fears of a China-led deceleration in global growth gripped markets. DAX dropped to lowest point since January. US stocks are also at lowest point since 6 months with Dow Jones falling over 350 points
• North Korea troops on war alert, causing demand for safe haven (JPY and Gold)
A very volatile Asian session, with stocks extending selloff while gold and safe haven JPY surged to new highs. AUDUSD came also under renewed pressure due to the Chinese manufacturing data. Going into the EU session, we expect the EU PMI numbers to be released but the impact will likely be limited and focus should remain on price action and technical levels.

Trading Quote of the Day:

“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria” John Templeton.

EURUSD
Pivot: 1.119
Likely scenarios: Long positions above 1.119 with targets @ 1.131 & 1.137 in extension.
Alternative scenario: Below 1.119 look for further downside with 1.115 & 1.11 as targets.
Comment: The RSI is supported by a rising trend line.

GBPUSD
Pivot: 1.572
Likely scenarios: Short positions below 1.572 with targets @ 1.563 & 1.56 in extension.
Alternative scenario: Above 1.572 look for further upside with 1.577 & 1.5805 as targets.
Comment: As long as the resistance at 1.572 is not surpassed, the risk of the break below 1.563 remains high.

 

AUDUSD
Pivot: 0.734
Likely scenarios: Short positions below 0.734 with targets @ 0.728 & 0.7255 in extension.
Alternative scenario: Above 0.734 look for further upside with 0.736 & 0.739 as targets.
Comment: As long as 0.734 is resistance, look for choppy price action with a bearish bias.

3

USDJPY
Pivot: 123.65
Likely scenarios: Short positions below 123.65 with targets @ 122.75 & 122.35 in extension.
Alternative scenario: Above 123.65 look for further upside with 124 & 124.2 as targets.
Comment: The RSI has broken down its 30 level.

4

USDCAD
Pivot: 1.313
Likely scenarios: Short positions below 1.313 with targets @ 1.3055 & 1.302 in extension.
Alternative scenario: Above 1.313 look for further upside with 1.3175 & 1.3215 as targets.
Comment: As long as 1.313 is resistance, look for choppy price action with a bearish bias.

5

USDCHF
Pivot: 0.963
Likely scenarios: Short positions below 0.963 with targets @ 0.954 & 0.951 in extension.
Alternative scenario: Above 0.963 look for further upside with 0.967 & 0.9725 as targets.
Comment: A break below 0.954 would trigger a drop towards 0.951.

6

GOLD
Pivot: 1148
Likely scenarios: Long positions above 1148 with targets @ 1173 & 1178 in extension.
Alternative scenario: Below 1148 look for further downside with 1142 & 1132 as targets.
Comment: The RSI is well directed.

7

OIL
Pivot: 41.8
Likely scenarios: Short positions below 41.8 with targets @ 40.4 & 39.95 in extension.
Alternative scenario: Above 41.8 look for further upside with 42.6 & 43.2 as targets.
Comment: As long as 41.8 is resistance, likely decline to 40.4.

8

DAX

Pivot: 10650

Likely scenario: Short positions below 10650 with targets @ 10000 & 9890 in extension.

Alternative scenario: Above 10650 look for further upside with 10910 & 11090 as targets.

Comment: The RSI is bearish and calls for further downside.

9

Important note: These technical and research reports are provided to easy-forex® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easy-forex® to you to engage in any trade. Hence, easy-forex® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easy-forex®. If you do not agree to this, you are strongly advised not to use these reports.

Report prepared by the easy-forex VIP desk at 06:10 GMT.

The post EU Session Bullet Report – Deja-vous of 2007 stock market meltdown appeared first on Forex.Info.

Source:: EU Session Bullet Report – Deja-vous of 2007 stock market meltdown

About the Author
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.

Related Posts

Leave a Reply

*