EU Session Bullet Report – USD index higher on rate hike expectations

The combination of further stimulus expectations by the ECB in December and confirmation from another Fed member during the weekend, that the US is ready to hike rates for the first time in 11 years in December, weighed on the EURUSD. The pair made new lows at 1.0595. Along with the euro new monthly lows were performed also by SILVER at 13.90. Commodities are generally under pressure, as can be seen also by GOLD, on the back of a strong USD and lower metals demand coming from China.

On the other hand, USD index, USD/CAD and USD/CNH made new monthly highs. Overall, as can be seen, the USD has been boosted as of late, however it still remains in a range and further catalysts are needed for the rally to resume action. Looking ahead, the economic calendar is busy this week and we start off Monday with Eurozone PMIs; US existing home sales.

Trading quote of the day: “To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking.” – Alexander Elder

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.0665
Likely scenario: Short positions below 1.0665 with targets @ 1.056 & 1.05 in extension.
Alternative scenario: Above 1.0665 look for further upside with 1.071 & 1.0765 as targets.
Comment: The RSI is capped by a declining trend line.

GBP/USD
Pivot: 1.523
Likely scenario: Short positions below 1.523 with targets @ 1.5155 & 1.513 in extension.
Alternative scenario: Above 1.523 look for further upside with 1.5255 & 1.531 as targets.
Comment: The RSI is badly directed.

AUD/USD
Pivot: 0.7215
Likely scenario: Short positions below 0.7215 with targets @ 0.715 & 0.7115 in extension.
Alternative scenario: Above 0.7215 look for further upside with 0.725 & 0.727 as targets.
Comment: The RSI is badly directed.

USD/JPY
Pivot: 122.85
Likely scenario: Long positions above 122.85 with targets @ 123.4 & 123.55 in extension.
Alternative scenario: Below 122.85 look for further downside with 122.7 & 122.55 as targets.
Comment: The RSI is bullish and calls for further upside.

USD/CAD
Pivot: 1.332
Likely scenario: Long positions above 1.332 with targets @ 1.343 & 1.3455 in extension.
Alternative scenario: Below 1.332 look for further downside with 1.3295 & 1.3265 as targets.
Comment: The RSI calls for a new upleg.

USD/CHF
Pivot: 1.0145
Likely scenario: Long positions above 1.0145 with targets @ 1.022 & 1.025 in extension.
Alternative scenario: Below 1.0145 look for further downside with 1.0115 & 1.0075 as targets.
Comment: The RSI is bullish and calls for further upside.

GOLD
Pivot: 1079
Likely scenario: Short positions below 1079 with targets @ 1064 & 1061 in extension.
Alternative scenario: Above 1079 look for further upside with 1084 & 1088 as targets.
Comment: As long as 1079 is resistance, likely decline to 1064.

OIL
Pivot: 42
Likely scenario: Short positions below 42 with targets @ 40.22 & 39.9 in extension.
Alternative scenario: Above 42 look for further upside with 42.76 & 43.25 as targets.
Comment: As long as 42 is resistance, likely decline to 40.22.

DAX
Pivot: 10980
Likely scenario: Long positions above 10980 with targets @ 11250 & 11330 in extension.
Alternative scenario: Below 10980 look for further downside with 10830 & 10675 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

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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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