EU Session Bullet Report – US Holiday, USD At New Highs

After posting a new multi month low, EUR/USD stuck in a 15 pip range throughout the Asian Session. Yesterday, the common currency visited 1.0565, levels not seen since April. Catalyst for the move lower, was the expectation that FED will raise rates in December after a period of 10 years of no raise policy, something that was further exacerbated by the strong US data released yesterday. Combined with the expectation that ECB will add further stimulus in December to help combat the fatiguing EU economy, then there’s not much reasons for the EUR to behave in any other way. USD index is not trading above 100. Meanwhile, today markets will be closed in the US due to the Thanksgiving Day celebration. Tomorrow US will also have Black Friday, so liquidity might be thin until Monday. Also notable, the AUD/USD pair advanced up to 0.7282, its highest in 5 weeks, but ended the day unchanged around 0.7240. The GBP/USD pair came under increasing downside pressure and fell down to 1.5055 during the European morning, but bounced and took the 1.5100 level on better than expected GDP data. Oil and GOLD are slightly higher.
Data wise, it is pretty quiet today but given the holiday lack of liquidity can often lead to greater volatility.

Trading Quote of the Day:

“Risk comes from not knowing what you’re doing.”

Green lines are resistance, Red lines are support.

EUR/USD

Pivot: 1.065

Likely scenario: Short positions below 1.065 with targets @ 1.056 & 1.052 in extension.

Alternative scenario: Above 1.065 look for further upside with 1.068 & 1.071 as targets.

Comment: The upward potential is likely to be limited by the resistance at 1.065.