EU Session Bullet Report – Gold rallies as Sentiment is split

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European and US stocks closed the day higher yesterday as news that the US economy grew by 3.7% in Q2. This calmed market nerves improving sentiment resulting in leading stock indices continued recovering. More than 50% of losses made since last weeks volatile selloff have now been clawed back.

In Asia this morning, major indices AustraliaASX, HongKong50 and the China50 are trading slightly lower as concerns over growth in China continue to worry the region and its trading partners.

Gold staged a strong comeback yesterday after reaching lows of almost 1118 before closing the day just above 1126. Weak sentiment in Asia this morning however, has seen the shiny metal boosted further and is now trading above 1130. As the storm calms following the past weeks panic selling, investor senitiment seems to differ from one continent to the next so expect to see volatile price swings based on economic data.

Good news in Japan this morning where unemployment fell to 3.3% versus 3.4% expected. Retail sales Y/Y also showed an increase of 1.6% versus 1.1% expected which has given a boost early on to the Japan225.

Oil made its biggest daily gain in more than 4 months yesterday on the back of US GDP data and has opened higher today currently trading above $43.

Today we can expect action on GBP crosses as the UK releases Q2 GDP data at 08:30 GMT so watch out for that. With Eurozone industrial data at 09:00 GMT trade balance and PCE from US later today we can expect a busy end to the week.

From everyone at easy-forex, we wish you a pleasant weekend.

Trading quote of the day:

“The most important organ in the body as far as the stock market is concerned is the guts, not the head. Anyone can acquire the know-how for analyzing stocks.”

– Peter Lynch

EURUSD
Pivot: 1.135
Likely scenario: Short positions below 1.135 with targets @ 1.117 & 1.11 in extension.
Alternative scenario: Above 1.135 look for further upside with 1.141 & 1.147 as targets.
Comment: As long as 1.135 is resistance, look for choppy price action with a bearish bias.

GBPUSD
Pivot: 1.55
Likely scenario: Short positions below 1.55 with targets @ 1.536 & 1.5325 in extension.
Alternative scenario: Above 1.55 look for further upside with 1.557 & 1.562 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.

 

AUDUSD
Pivot: 0.715
Likely scenario: Long positions above 0.715 with targets @ 0.7205 & 0.725 in extension.
Alternative scenario: Below 0.715 look for further downside with 0.712 & 0.7095 as targets.
Comment: The pair has validated a bullish “Inverted Head and Shoulders” pattern.

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USDJPY
Pivot: 120.25
Likely scenario: Long positions above 120.25 with targets @ 121.75 & 122.35 in extension.
Alternative scenario: Below 120.25 look for further downside with 119.4 & 118.9 as targets.
Comment: The RSI is mixed to bullish. The pair is supported by a rising trend line.

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USDCAD
Pivot: 1.324
Likely scenario: Short positions below 1.324 with targets @ 1.3145 & 1.311 in extension.
Alternative scenario: Above 1.324 look for further upside with 1.3305 & 1.3355 as targets.
Comment: The RSI is mixed to bearish.

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USDCHF
Pivot: 0.955
Likely scenario: Long positions above 0.955 with targets @ 0.969 & 0.973 in extension.
Alternative scenario: Below 0.955 look for further downside with 0.948 & 0.943 as targets.
Comment: Technically the RSI is above its neutrality area at 50.

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GOLD
Pivot: 1117
Likely scenario: Long positions above 1117 with targets @ 1139.5 & 1146.5 in extension.
Alternative scenario: Below 1117 look for further downside with 1109 & 1101 as targets.
Comment: The RSI is mixed to bullish.

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OIL
Pivot: 41.4
Likely scenario: Long positions above 41.4 with targets @ 43.9 & 44.5 in extension.
Alternative scenario: Below 41.4 look for further downside with 40.6 & 39.8 as targets.
Comment: The RSI is mixed to bullish.

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DAX
Pivot: 10440
Likely scenario: Short positions below 10440 with targets @ 9920 & 9780 in extension.
Alternative scenario: Above 10440 look for further upside with 10650 & 10735 as targets.
Comment: The RSI is mixed to bearish.

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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.

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TIME IS IN GMT(+3)

Report prepared by the easy-forex VIP desk at 06:20 GMT.

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