EU Session Bullet Report | New Year meltdown, Oil crashes as Gold surges

In the US overnight, stocks tumbled to 3 month lows with energy and raw material companies leading the slide. As a result, oil went into freefall hitting an 11 year low currently trading at $31.66 per barrel at time of writing. In Europe also, Germany’s DAX has taken a battering so far shedding more than 1000 points in the last week alone with it now trading at 9930 at time of writing.

Amid the uncertainty, Gold made major gains climbing more than $15 yesterday, its biggest 1 day rise since last months NFP and again this morning is continuing its strong bullish march currently trading just above 1100 at time of writing.

USDCAD hit a new 12 year high as Oil producing nations were hardest hit. Even the usually dominant USD took a hit as EURUSD rebounded from its low of 1.0713 currently trading at 1.0812 at time of writing. USDJPY was also volatile hitting a fresh 4 month low and is now just below 118.000.

Today we can continue to expect the unexpected as the uncertainty continues to create huge volatility on the markets. News wise today we have the EU unemployment rate at 10:00 GMT followed by US unemployment claims at 13:30 GMT which may give some insight towards tomorrows Non-Farm payroll data .

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.

EUR/USD

Pivot: 1.0745

Likely scenario: long positions above 1.0745 with targets @ 1.084 & 1.0885 in extension.

Alternative scenario: below 1.0745 look for further downside with 1.0705 & 1.067 as targets.

Comment: the RSI is supported by a rising trend line.

GBP/USD

Pivot: 1.468

Likely scenario: short positions below 1.468 with targets @ 1.459 & 1.456 in extension.

Alternative scenario: above 1.468 look for further upside with 1.4725 & 1.4755 as targets.

Comment: The pair is trading within a bearish channel.

AUD/USD

Pivot: 0.709

Likely scenario: short positions below 0.709 with targets @ 0.7015 & 0.699 in extension.

Alternative scenario: above 0.709 look for further upside with 0.7135 & 0.7175 as targets.

Comment: a break below 0.7015 would trigger a drop towards 0.699.

USD/JPY

Pivot: 118.8

Likely scenario: short positions below 118.8 with targets @ 117.6 & 117.25 in extension.

Alternative scenario: above 118.8 look for further upside with 119.3 & 119.7 as targets.

Comment: the RSI is mixed to bearish.

USD/CAD

Pivot: 1.402

Likely scenario: long positions above 1.402 with targets @ 1.4175 & 1.4245 in extension.

Alternative scenario: below 1.402 look for further downside with 1.397 & 1.3915 as targets.

Comment: the RSI is well directed.

GOLD

Pivot: 1086

Likely scenario: long positions above 1086 with targets @ 1104 & 1110 in extension.

Alternative scenario: below 1086 look for further downside with 1082 & 1075 as targets.

Comment: the RSI is mixed to bullish.

OIL

Pivot: 34.3

Likely scenario: short positions below 34.3 with targets @ 32.05 & 31 in extension.

Alternative scenario: above 34.3 look for further upside with 35.15 & 35.78 as targets.

Comment: the RSI has broken down its 30 level.

DAX

Pivot: 10230

Likely scenario: short positions below 10230 with targets @ 9750 & 9630 in extension.

Alternative scenario: above 10230 look for further upside with 10425 & 10625 as targets.

Comment: the RSI is bearish and calls for further decline.

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TIME IS IN GMT(+2)

Report prepared by the easy-forex VIP desk 07:15 GMT.

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