US Session Bullet Report

The EUR did not manage to advance further despite early indications that USD was under pressure. The pair was sold off at 1.1280 area and is trading just shy of 1.12 now. On the contrary GBPUSD is trading at session lows (1.5160) following disappointing PMI numbers.

The BoE meets on Thursday to decide interest rates. The last nonfarm payrolls report shows that the US economy created only 142k jobs in September while economists were looking for a reading of 201k. Even worse, the previous figure was downwardly revised to 136k from 173k. The likelihood for October fell to 10% while the odds of a lift-off in December dropped to about 25%.

Whereas currency pairs versus the USD are a mixed bag, in equities, indices are having their best day in weeks. Disappointing jobs data out of the US on Friday helped fuel speculation of a delay in Fed rate liftoff.

Despite a strong day for GOLD on Friday, further advance was halted. Gold recorded its fifth consecutive quarterly loss, the worst series of declines since 1997, on predictions of rate increase by the Fed since the shiny metal provides no interest to its holders. With the possible delay of the Fed’s liftoff decision, gold should have some room to rise.

Trading quote of the day:

Date them, don’t marry them (losing positions)

EURUSD
Pivot: 1.128
Likely scenario: Short positions below 1.128 with targets @ 1.1195 & 1.1145 in extension.
Alternative scenario: Above 1.128 look for further upside with 1.1335 & 1.1385 as targets.
Comment: The RSI is badly directed.

GBPUSD

Pivot: 1.5165
Likely scenario: Long positions above 1.5165 with targets @ 1.5245 & 1.529 in extension.
Alternative scenario: Below 1.5165 look for further downside with 1.514 & 1.5105 as targets.
Comment: The RSI lacks downward momentum.

AUDUSD

Pivot: 0.7035
Likely scenario: Long positions above 0.7035 with targets @ 0.7115 & 0.715 in extension.
Alternative scenario: Below 0.7035 look for further downside with 0.7 & 0.6975 as targets.
Comment: The RSI is well directed.