EU Session Bullet Report

The market focus today is on Bank of England rate decision and FOMC minutes release. In the UK, BoE is widely expected to keep rates unchanged at 0.5% and show that the 9 members voted for as 8-1 for keeping rates unchanged over hiking them. The MPC members should be positive about the domestic development (especially about the labor market) but slightly worried about the global market turmoil and the slowdown in China. FOMC minutes should express some concern over the global developments as signaled by the soft tone by Janet Yellen at the press conference following the meeting.

In currency markets, majors continue trading in a tight range especially USDJPY and EURUSD. Central Bank cues should be needed in order for the 2 pairs to break out of their range. Commodity currencies (CAD, AUD, NZD, NOK) are trading near their weekly highs, however the rally seems to have run out of steam.

WE shift our focus on FOMC and US jobless claims release for further direction.

Trading quote of the day:

All trading results are insignificant unless it is your last.

EURUSD
Pivot: 1.12
Likely scenario: Long positions above 1.12 with targets @ 1.1285 & 1.132 in extension.
Alternative scenario: Below 1.12 look for further downside with 1.117 & 1.1145 as targets.
Comment: The RSI is mixed with a bullish bias.

GBPUSD

Pivot: 1.525
Likely scenario: Long positions above 1.525 with targets @ 1.534 & 1.538 in extension.
Alternative scenario: Below 1.525 look for further downside with 1.521 & 1.518 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

AUDUSD

Pivot: 0.715
Likely scenario: Long positions above 0.715 with targets @ 0.7235 & 0.728 in extension.
Alternative scenario: Below 0.715 look for further downside with 0.711 & 0.707 as targets.

Comment: The RSI is mixed and calls for caution.

USDJPY

Pivot: 120.35
Likely scenario: Short positions below 120.35 with targets @ 119.75 & 119.45 in extension.
Alternative scenario: Above 120.35 look for further upside with 120.6 & 120.9 as targets.
Comment: As long as 120.35 is resistance, look for choppy price action with a bearish bias.