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EU Session Bullet Report | Super Mario does it again!
Mario Draghi once again surprised investors with his drastic change in heart.A rather hawkish Draghi reversed his stance on Thursday afternoon and adopted a definite dovish persona. Once again he seems to be promising markets additional stimulus at the March meeting, but this is a song that Draghi has played before. The euro dipped 100 points during Draghi’s press conference but recovered just after.
The cable recovered marginally to trade at 1.4190 as markets continued to price in political risks linked to the British economy. GBP appreciated by 0.19 percent in yesterday’s trading session on the back of weakness in dollar. However, sharp upside was capped on the back of mixed economic data. UK unemployment fell unexpectedly in December whereas UK average earnings declined more than forecasted.
Oil prices diverged on Friday morning with WTI adding 18 points to 29.72 while Brent oil dipped 8 points to 29.53. U.S.Crude inventories climbed to the highest level since 1990.
Gold prices were driven lower on Thursday by the stronger U.S. Dollar. The inability to take out the previous top at $1113.10 on Wednesday is also a sign of increasing selling pressure. Stronger U.S. equity markets are also adding to the weakness in the gold market.
Trading quote of the day: There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market. Paul Tudor Jones
Technical Analysis
Green lines are resistance, Red lines are support.
EUR/USD
Pivot: 1.0895
Likely scenario: short positions below 1.0895 with targets @ 1.0805 & 1.0775 in extension.
Alternative scenario: above 1.0895 look for further upside with 1.092 & 1.094 as targets.
Comment: the RSI is bearish and calls for further downside.
GBP/USD
Pivot: 1.4165
Likely scenario: long positions above 1.4165 with targets @ 1.427 & 1.4325 in extension.
Alternative scenario: below 1.4165 look for further downside with 1.4125 & 1.408 as targets.
Comment: the RSI is well directed.
AUD/USD
Pivot: 0.6955
Likely scenario: long positions above 0.6955 with targets @ 0.704 & 0.7065 in extension.
Alternative scenario: below 0.6955 look for further downside with 0.6925 & 0.688 as targets.
Comment: technically the RSI is above its neutrality area at 50.
USD/JPY
Pivot: 117.1
Likely scenario: long positions above 117.1 with targets @ 118.35 & 118.6 in extension.
Alternative scenario: below 117.1 look for further downside with 116.6 & 116.2 as targets.
Comment: the RSI is well directed.
USD/CAD
Pivot: 1.441
Likely scenario: short positions below 1.441 with targets @ 1.4185 & 1.411 in extension.
Alternative scenario: above 1.441 look for further upside with 1.4515 & 1.4585 as targets.
Comment: as long as 1.441 is resistance, look for choppy price action with a bearish bias.
GOLD
Pivot: 1093.5
Likely scenario: long positions above 1093.5 with targets @ 1106 & 1110 in extension.
Alternative scenario: below 1093.5 look for further downside with 1090.5 & 1086 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
OIL
Pivot: 29
Likely scenario: long positions above 29 with targets @ 31.2 & 32 in extension.
Alternative scenario: below 29 look for further downside with 28.4 & 27.6 as targets.
Comment: the RSI is bullish and calls for further advance.
DAX
Pivot: 10800
Likely scenario: Long positions above 10800 with targets @ 11900 & 12390 in extension.
Alternative scenario: Below 10800 look for further downside with 10450 & 10000 as targets.
Comment: The RSI calls for a rebound.
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