EU Session Bullet Report

This morning RBA (Australia) kept interest rates unchanged at 2%. Although the decision was widely anticipated, AUDUSD advanced higher. OIL and commodity markets seems to be recovering which supports all the commodity currencies (CAD, AUD, NZD, and NOK). Rebound in the stock market is also evident with all major indices closing the day higher yesterday and things looking to pick up from where they left from last night. Asian stocks had their 5th winning day in a row.

Released from UK, PMI services dropped sharply to 53.3 to September, down from August’s 55.6. That’s way below expectation of a rise to 56.4. GBP/USD took a nosedive, and is the week’s weakest currency so far.

Today’s releases include Germany factory orders, and US trade balance data. ECB President Mario Draghi is also scheduled to talk later in the day.

Trading quote of the day:

funny thing about the stock market is that every time one buys, another person sells, and both think they are right.

“william Feather”

EUR/USD
Pivot: 1.1225
Likely scenario: Short positions below 1.1225 with targets @ 1.1145 & 1.1115 in extension.
Alternative scenario: Above 1.1225 look for further upside with 1.128 & 1.132 as targets.
Comment: The RSI advocates for further decline.

 

GBP/USD
Pivot: 1.52
Likely scenario: Short positions below 1.52 with targets @ 1.5105 & 1.508 in extension.
Alternative scenario: Above 1.52 look for further upside with 1.5245 & 1.529 as targets.
Comment: The RSI is mixed to bearish.

 

 

 
AUDUSD
Pivot: 0.7055
Likely scenario: Long positions above 0.7055 with targets @ 0.715 & 0.718 in extension.
Alternative scenario: Below 0.7055 look for further downside with 0.7035 & 0.7 as targets.
Comment: The RSI is well directed.

 

 

USDJPY
Pivot: 120.1
Likely scenario: Long positions above 120.1 with targets @ 120.65 & 120.9 in extension.
Alternative scenario: Below 120.1 look for further downside with 119.8 & 119.45 as targets.
Comment: The RSI is mixed to bullish.

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