China’s exports fell less than expected in August but a steeper slide in imports pointed to continued economic weakness. Shanghai Composite and the Nikkei are both trading lower however, Australia’s ASX is trading up by just over 1% following positive business confidence data from the National Australian Bank.
JPY continued its strong recovery against the Greenback and is now trading below its intraday pivot of 119.70 with the RSI indicating further downside.
GBPUSD’s strong start to the week continued and is now up almost 150 points since Monday’s open. Oil has again fallen below the $45 mark with technicals indicating that we may see a further decline.
With the US returning from their Labor day holiday, we can expect to see more action and will be interesting to see how US stocks open later today.
Calendar wise, we have no major news today although at 09:00 GMT, we have revised GDP q/q figures from the Eurozone.
Trading quote of the day:
“Without action, the best intentions in the world are nothing more than that: intentions.”
– Jordan Belfort
EURUSD
Pivot: 1.115
Likely scenario: Long positions above 1.115 with targets @ 1.126 & 1.1295 in extension. Alternative scenario: Below 1.115 look for further downside with 1.1115 & 1.1085 as targets. Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
GBPUSD
Pivot: 1.5265
Likely scenario: Long positions above 1.5265 with targets @ 1.5385 & 1.541 in extension. Alternative scenario: Below 1.5265 look for further downside with 1.524 & 1.52 as targets. Comment: The RSI is well directed.
AUDUSD
Pivot: 0.699
Likely scenario: Short positions below 0.699 with targets @ 0.69 & 0.685 in extension. Alternative scenario: Above 0.699 look for further upside with 0.702 & 0.7065 as targets. Comment: As long as 0.699 is resistance, look for choppy price action with a bearish bias.
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