EU Session Bullet Report

For the day that passed and up until today, the USD is broadly lower, as the markets are on a wait and see mode ahead of Wednesday’s FOMC meeting. The USD rally of last week was ignited by the surprise rate cut in China as well as signals that the ECB will embark on more QE.

Yesterday, data showed that U.S. new home sales dropped 11.5% last month to 468.000 units from a revised total of 529.000 units in August. EUR/USD was unchanged at 1.1058, while the pound was slightly lower at 1.5350, down 0.03%.

This Wednesday, the FED is likely going to keep rates as expected while keeping its options open for the important December meeting. The majority of FED members as well as Chairwoman Janet Yellen have said that they expect the first rate rise to happen this year, however this possibility has become more complicated due to the recent slowdown in economic data as well as outside risks to the US economy (China).

The market news awaited today are UK GDP, US durable goods orders and US consumer confidence.

Trading Quote of the Day:

The trend is your friend.

Green lines are resistance, Red lines are support

EURUSD
Pivot: 1.107
Likely scenario: Short positions below 1.107 with targets @ 1.099 & 1.0935 in extension.
Alternative scenario: Above 1.107 look for further upside with 1.114 & 1.12 as targets.
Comment: The RSI is mixed and calls for caution.

GBPUSD

Pivot: 1.538
Likely scenario: Short positions below 1.538 with targets @ 1.5305 & 1.529 in extension.
Alternative scenario: Above 1.538 look for further upside with 1.542 & 1.5475 as targets.
Comment: As long as 1.538 is resistance, expect a return to 1.5305.

AUDUSD

Pivot: 0.7265
Likely scenario: Short positions below 0.7265 with targets @ 0.7195 & 0.718 in extension.
Alternative scenario: Above 0.7265 look for further upside with 0.7305 & 0.7345 as targets.
Comment: As long as 0.7265 is resistance, look for choppy price action with a bearish bias.