EU Session Bullet Report

Asian shares gave up gains while the USD recovered versus the EUR after comments from FED’s Yellen last night. In summary, the FED Chairwoman mentioned that she and other policy members expect a 2015 liftoff in interest rates. As a result EURUSD is trading at 1.1170 while GOLD’s rally to 1156 settled for 1146 at time of writing.

Economic data released yesterday showed that USD durable goods fell less than expected in August (2%). Meanwhile Americans seeking unemployment benefits fell showing that the economy is on the right path towards full employment. New home sales also rose more than expected which further solidifies the case for a rate hike this year.

Stocks around the world fell for a fifth day on Thursday, sliding towards two-year lows as worries lingered over global economic growth and Volkswagen’s emissions test scandal rattled European carmakers. Overall, it looks like FED’s Yellen comments have become a game changer for the time.

US GDP at 12:30 GMT is the highlight of the day in terms of economic news releases

Trading Quote of the Day:

“In investing, what is comfortable is rarely profitable”

– Robert Arnott

EURUSD
Pivot: 1.1235
Likely scenario: Short positions below 1.1235 with targets @ 1.1105 & 1.107 in extension.
Alternative scenario: Above 1.1235 look for further upside with 1.1295 & 1.133 as targets.
Comment: The RSI is bearish and calls for further downside.
 

GBPUSD

Pivot: 1.5285
Likely scenario: Short positions below 1.5285 with targets @ 1.515 & 1.509 in extension.
Alternative scenario: Above 1.5285 look for further upside with 1.5355 & 1.543 as targets.
Comment: The RSI lacks upward momentum.

AUDUSD

Pivot: 0.698
Likely scenario: Long positions above 0.698 with targets @ 0.706 & 0.709 in extension.
Alternative scenario: Below 0.698 look for further downside with 0.6935 & 0.69 as targets.
Comment: The pair has broken above a declining trend line.