EU Session Bullet Report – Dollar strengthens, global equities rally

Even though the FED seemed optimistic about the US economy, the FOMC statement did not drop any hints on whether an interest rate rise in September is a possibility or not. EURUSD spiked up to $1.1078 and then dropped down to $1.1003 during the statement.

Continued USD strength is the order of the day so far following the European open as EURUSD is now trading below its support at 1.0960 at 1.0950 at time of writing. A clear break from here then we are looking at the next support at $1.0920.

The yellow metal is seen under pressure and took a knock during the Asian session and is trading around the support at $1088, while we can see the second support at $1077 and $1073 in extension.

Crude oil inventories came out to be -4.2M, worse than the expectation of -0.1M yesterday, giving a boost to the oil seeing it shoot above $49 although is currently trading just under.

With Saudi Arabia planning to pull back Oil production, and the Iran deal possibly leading to excess oil supplies, Oil finds itself in somewhat of a limbo leading to global growth and manufacturing being the major driver currently.

Today from the Eurozone we have German unemployment data at 07:55 GMT and at 09:00GMT we have a barage of data including industrial and economic sentiment as well as consumer confidence. In the US later, we have advanced GDP and unemployment claims at 12:30 GMT so we can expect another day of high volatility and opportunities.

Trading quote of the day: “Volatility is greatest at turning points, diminishing as a new trend becomes established.” – George Soros

Green lines are resistance, Red lines are support

EURUSD
Pivot: 1.1025
Likely scenario: Short positions below 1.1025 with targets @ 1.096 & 1.092 in extension.
Alternative scenario: Above 1.1025 look for further upside with 1.1085 & 1.113 as targets.
Comment: A break below 1.096 would trigger a drop towards 1.092.

GBPUSD
Pivot: 1.557
Likely scenario: Long positions above 1.557 with targets @ 1.5635 & 1.569 in extension.
Alternative scenario: Below 1.557 look for further downside with 1.5535 & 1.5495 as targets.
Comment: The RSI lacks downward momentum.

AUDUSD
Pivot: 0.7325
Likely scenario: Short positions below 0.7325 with targets @ 0.7285 & 0.7255 in extension.
Alternative scenario: Above 0.7325 look for further upside with 0.735 & 0.738 as targets.
Comment: The upward potential is likely to be limited by the resistance at 0.7325.

USDJPY
Pivot: 123.7
Likely scenario: Long positions above 123.7 with targets @ 124.25 & 124.4 in extension.
Alternative scenario: Below 123.7 look for further downside with 123.5 & 123.3 as targets.
Comment: The RSI is bullish and calls for further upside.

USDCAD
Pivot: 1.298
Likely scenario: Short positions below 1.298 with targets @ 1.291 & 1.286 in extension.
Alternative scenario: Above 1.298 look for further upside with 1.305 & 1.3095 as targets.
Comment: As long as the resistance at 1.298 is not surpassed, the risk of the break below 1.291 remains high.

USDCHF
Pivot: 0.9635
Likely scenario: Long positions above 0.9635 with targets @ 0.9715 & 0.974 in extension.
Alternative scenario: Below 0.9635 look for further downside with 0.96 & 0.9545 as targets.
Comment: The RSI is bullish and calls for further upside.

GOLD
Pivot: 1106
Likely scenario: Short positions below 1106 with targets @ 1088 & 1077 in extension.
Alternative scenario: Above 1106 look for further upside with 1119 & 1129.4 as targets.
Comment: The RSI is mixed.

OIL
Pivot: 47.35
Likely scenario: Long positions above 47.35 with targets @ 49.5 & 50.5 in extension.
Alternative scenario: Below 47.35 look for further downside with 46.65 & 45.95 as targets.
Comment: The RSI is mixed to bullish.

DAX
Pivot: 10950
Likely scenario: Long positions above 10950 with targets @ 11305 & 11435 in extension.
Alternative scenario: Below 10950 look for further downside with 10800 & 10660 as targets.
Comment: The RSI is bullish and calls for further upside.

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Report prepared by the easy-forex VIP desk at 06:50 GMT.

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