Overnight, RBA in Australia left rates unchanged at 2%. Governor Stevens said in a statement that the Board considered that prospects for improvement in the economy have strengthened over recent months and leaving the rate unchanged was an appropriate decision. AUD/USD last traded up 0.72% to settle at 0.7198, while NZD/USD dipped 0.01% to 0.6745. Overnight, the USD was mixed versus its most commonly traded counterparts, after reports showed manufacturing activity in the US grew at the slowest pace in more than 2 years in October.

Gold hit 4 week lows at 1132.50 as higher chances of raising rates are putting the metal under pressure. Silver and other metals too are under pressure since the rise in expectations for a December hike. Investor’s will shift their focus today to UK PMI and US Durable Goods. Tomorrow will feature the ADP employment report ahead of Friday’s all-important NFP.

Trading Quote of the Day: “Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic”  Warren Buffet

Green lines are resistance, Red lines are support

EUR/USD
Pivot: 1.0965
Likely scenario: Long positions above 1.0965 with targets @ 1.107 & 1.11 in extension.
Alternative scenario: Below 1.0965 look for further downside with 1.0935 & 1.0895 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD
Pivot: 1.5405
Likely scenario: Long positions above 1.5405 with targets @ 1.545 & 1.55 in extension.
Alternative scenario: Below 1.5405 look for further downside with 1.5375 & 1.5345 as targets.
Comment: A support base at 1.5405 has formed and has allowed for a temporary stabilisation.

AUD/USD
Pivot: 0.712
Likely scenario: Long positions above 0.712 with targets @ 0.7225 & 0.726 in extension.
Alternative scenario: Below 0.712 look for further downside with 0.7065 & 0.7015 as targets.
Comment: The RSI is well directed.