EU Session Bullet Report – Market nerves ahead of Fed meeting

Asian markets came under pressure early this morning following soft economic data from China. Markets remain on edge as investors wait to see what the U.S Federal Reserve decides regarding interest rates later this week.

AUDUSD continued its recovery of the last 2 weeks, touching a 2 week high at 0.7134 before retracing back to 0.7080 at time of writing.

On Friday, Gold closed down for the third consecutive week as investors show little interest in the shiny metal.

Oil also remains under pressure and remains below $45 as low demand continues to keep its price down.

News wise, there is no major data today so markets may be driven by technicals as investors seek insight on what the Fed will decide on Thursday.

Trading quote of the day:

“You don`t need to be a weatherman to know which way the wind blows”

– Bob Dylan

EURUSD
Pivot: 1.129
Likely scenario: Long positions above 1.129 with targets @ 1.14 & 1.144 in extension.
Alternative scenario: Below 1.129 look for further downside with 1.125 & 1.121 as targets.
Comment: The RSI lacks downward momentum. The prices remain supported by a rising trend line.

GBPUSD
Pivot: 1.5395
Likely scenario: Long positions above 1.5395 with targets @ 1.5475 & 1.551 in extension.
Alternative scenario: Below 1.5395 look for further downside with 1.5335 & 1.529 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

AUDUSD
Pivot: 0.7065
Likely scenario: Long positions above 0.7065 with targets @ 0.7135 & 0.7155 in extension.
Alternative scenario: Below 0.7065 look for further downside with 0.703 & 0.7 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USDJPY
Pivot: 120.95
Likely scenario: Short positions below 120.95 with targets @ 119.9 & 119.6 in extension.
Alternative scenario: Above 120.95 look for further upside with 121.3 & 121.75 as targets.
Comment: As long as 120.95 is resistance, expect a return to 119.9. The pair has broken below its intraday rising trend line.

USDCAD
Pivot: 1.321
Likely scenario: Long positions above 1.321 with targets @ 1.3285 & 1.331 in extension.
Alternative scenario: Below 1.321 look for further downside with 1.3175 & 1.315 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USDCHF
Pivot: 0.9745
Likely scenario: Short positions below 0.9745 with targets @ 0.967 & 0.964 in extension.
Alternative scenario: Above 0.9745 look for further upside with 0.9795 & 0.9825 as targets.
Comment: A break below 0.967 would trigger a drop towards 0.964.

GOLD
Pivot: 1116
Likely scenario: Short positions below 1116 with targets @ 1098 & 1094 in extension.
Alternative scenario: Above 1116 look for further upside with 1126 & 1130.7 as targets.
Comment: As long as 1116 is resistance, likely decline to 1098.

OIL
Pivot: 44
Our preference: Long positions above 44 with targets @ 46.05 & 46.4 in extension.
Alternative scenario: Below 44 look for further downside with 43.4 & 42.75 as targets.
Comment: A support base at 44 has formed and has allowed for a temporary stabilisation.

DAX
Pivot: 10340
Likely scenario: Short positions below 10340 with targets @ 9953 & 9881 in extension.
Alternative scenario: Above 10340 look for further upside with 10525 & 10650 as targets.
Comment: As long as the resistance at 10340 is not surpassed, the risk of the break below 9953 remains high.

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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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