US Session Bullet Report – GBP rallies amidst cautious markets

Eurozone stocks have edged slightly higher on Wednesday although markets remain cautious ahead of tomorrow’s Fed rate decision.

The modest bullish mood has seen the Euro weaken against most currencies, notably against the GBP.

Earlier in the U.K, earnings grew at their fastest pace in more than 6 years. Unemployment also fell unexpectedly to 5.5% versus 5.6% expected, the lowest since 2008. The positive news prompted a rally for the GBP, climbing 100 points against the USD and is now testing its intraday resistance of 1.5450. GBP also gained more than 70 points against the EURO, which is now testing its support at 0.7260.

With the Monetary Policy Committee scheduled soon to testify to lawmakers, investors will be following this closely as speculation begins on when the U.K may raise its own interest rates.

Elsewhere, Gold has made good gains, breaking above its intraday pivot of 1110 and is now trading above 1113 at time of writing.

Although very modest, Oil is enjoying its second day of gains, currently trading at $45.35, just above its pivot of $44.33 so next few hours will be key to watch for possible further upside.

Core CPI data just released from the U.S came in as expected at 0.1%. Although no surprises, this index is a major barometer for gauging inflation and figures released could play a part in the Fed’s decision tomorrow.

Trading quote of the day:

“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.”

– Peter Lynch

EURUSD
Pivot: 1.13
Likely scnerio: Short positions below 1.13 with targets @ 1.118 & 1.1145 in extension.
Alternative scenario: Above 1.13 look for further upside with 1.1335 & 1.137 as targets.
Comment: The RSI is bearish and calls for further downside.

GBPUSD
Pivot: 1.536
Likely scnerio: Long positions above 1.536 with targets @ 1.545 & 1.5475 in extension.
Alternative scenario: Below 1.536 look for further downside with 1.5325 & 1.529 as targets.
Comment: The RSI broke above a bearish trend line.

AUDUSD
Pivot: 0.712
Likely scnerio: Long positions above 0.712 with targets @ 0.719 & 0.7225 in extension.
Alternative scenario: Below 0.712 look for further downside with 0.7085 & 0.704 as targets.
Comment: The RSI broke above a declining trend line.

USDJPY
Pivot: 119.8
Likely scnerio: Long positions above 119.8 with targets @ 120.65 & 120.95 in extension.
Alternative scenario: Below 119.8 look for further downside with 119.35 & 118.85 as targets.
Comment: The RSI is mixed to bullish.

USDCAD
Pivot: 1.321
Likely scnerio: Long positions above 1.321 with targets @ 1.3275 & 1.331 in extension.
Alternative scenario: Below 1.321 look for further downside with 1.3175 & 1.315 as targets.
Comment: The RSI calls for a rebound.

USDCHF
Pivot: 0.9695
Likely scnerio: Long positions above 0.9695 with targets @ 0.9765 & 0.9795 in extension.
Alternative scenario: Below 0.9695 look for further downside with 0.966 & 0.964 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GOLD
Pivot: 1110
Likely scnerio: Short positions below 1110 with targets @ 1103 & 1098 in extension.
Alternative scenario: Above 1110 look for further upside with 1115 & 1119 as targets.
Comment: Intraday technical indicators are mixed and call for caution.

OIL
Pivot: 44.8
Likely scnerio: Long positions above 44.8 with targets @ 45.88 & 46.4 in extension.
Alternative scenario: Below 44.8 look for further downside with 44.33 & 43.9 as targets.
Comment: The RSI is bullish and calls for further upside.

DAX
Pivot: 10065
Likely scnerio: Long positions above 10065 with targets @ 10340 & 10435 in extension.
Alternative scenario: Below 10065 look for further downside with 9881 & 9773 as targets.
Comment: The RSI is above its neutrality area at 50%.

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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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