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US Session Bullet Report – European Markets rally
European stocks broke a 5 day losing streak early today despite woes in China where the Shanghai Composite fell a further 1.7% today following it’s 8.5% slump on Monday.
In Europe, traders were boosted by positive earnings news which gave a lift to major stocks by almost 1%.
GBP was up against most major currencies folloiwng news that the economy grew in Q2 by 0.7% compared to 0.4% in Q1 which was aided by a big jump in Oil and Gas production. GBPUSD broke the 1.5600 mark briefly before retracing back to 1.5575 at time of writing.
It seems that with improved economic data from both sides of the Atlantic, the race is on between the US and UK as to who will be first to raise interest rates.
Elsewhere, Gold is still trading in a tight range between $1090 – $1100 whilst Oil slipped further down hitting a session low of $46.48 per barrel before climbing back to $47.40 at time of writing. Crude Oil inventories may certainly be worth watching out for tomorrow.
Trading quote of the day:
“The markets are the same now as they were five or ten years ago because they keep changing-just like they did then.” – Ed Seykota
Green lines are resistance, Red lines are support
EURUSD
Pivot: 1.113
Likely scenario: Short positions below 1.113 with targets @ 1.0995 & 1.096 in extension.
Alternative scenario: Above 1.113 look for further upside with 1.116 & 1.1195 as targets.
Comment: The RSI is badly directed.
GBPUSD
Pivot: 1.5535
Likely scenario: Long positions above 1.5535 with targets @ 1.5625 & 1.567 in extension.
Alternative scenario: Below 1.5535 look for further downside with 1.5495 & 1.5465 as targets.
Comment: The RSI is well directed.
AUDUSD
Pivot: 0.734
Likely scenario: Short positions below 0.734 with targets @ 0.7255 & 0.723 in extension.
Alternative scenario: Above 0.734 look for further upside with 0.738 & 0.7415 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
USDJPY
Pivot: 123.3
Likely scenario: Long positions above 123.3 with targets @ 123.85 & 124.15 in extension.
Alternative scenario: Below 123.3 look for further downside with 123 & 122.7 as targets.
Comment: The RSI is well directed.
USDCAD
Pivot: 1.305
Likely scenario: Short positions below 1.305 with targets @ 1.298 & 1.295 in extension.
Alternative scenario: Above 1.305 look for further upside with 1.3095 & 1.3125 as targets.
Comment: The upward potential is likely to be limited by the resistance at 1.305.
USDCHF
Pivot: 0.9585
Likely scenario: Long positions above 0.9585 with targets @ 0.9665 & 0.9685 in extension.
Alternative scenario: Below 0.9585 look for further downside with 0.9545 & 0.9525 as targets.
Comment: The RSI is well directed.
GOLD
Pivot: 1106
Likely scenario: Short positions below 1106 with targets @ 1086.5 & 1077 in extension.
Alternative scenario: Above 1106 look for further upside with 1119 & 1129.4 as targets.
Comment: As long as 1106 is resistance, likely decline to 1086.5.
OIL
Pivot: 47.45
Likely scenario: Short positions below 47.45 with targets @ 45.95 & 45.5 in extension.
Alternative scenario: Above 47.45 look for further upside with 48.2 & 49 as targets.
Comment: As long as 47.45 is resistance, likely decline to 45.95.
DAX
Pivot: 10950
Likely scenario: Long positions above 10950 with targets @ 11305 & 11435 in extension.
Alternative scenario: Below 10950 look for further downside with 10800 & 10660 as targets.
Comment: The RSI calls for a rebound.
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TIME IS IN GMT(+3)
Report prepared by the easy-forex VIP desk at 09:00 GMT.
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