US Session Bullet Report

The Market has taken a breather today and trading is directionless with the exceptions of Gold which is under pressure but still over the significant support of $1117. EURUSD is hanging around 1.1230 after a high of 1.1265 last night. The pair retreated to 1.1165 however further direction will be dependent on US rate hike expectations. Today is a bank holiday in the UK and volumes are on the lower side. Some minor data to be released later in the US (PMI). Feedback from the Jackson Hole meetings suggest that the Fed is still on course to raise rates this year however no one knows yet if it will be September or October.

A September rate hike by the Fed remains a close call. Currently, there is much global uncertainty and U.S. markets have been volatile amid concern over slowing growth in China, but another positive payrolls reading this Friday should keep the Fed on track with considering higher rates ahead of the end of the year or even in September.

A very busy week awaits us with rate decisions from the RBA and the ECB, GDP data from Canada and Australia, ending with NFP numbers in the U.S and Canada.

Trading quote of the day:

“The ability to foresee that some things cannot be foreseen is a very important quality”.

– Rousseau

EURUSD
Pivot: 1.1265
Likely scenario: Short positions below 1.1265 with targets @ 1.1155 & 1.11 in extension.
Alternative scenario: Above 1.1265 look for further upside with 1.131 & 1.135 as targets.
Comment: As long as 1.1265 is resistance, look for choppy price action with a bearish bias.

GBPUSD

Pivot: 1.5445
Likely scenario: Short positions below 1.5445 with targets @ 1.5325 & 1.5265 in extension.
Alternative scenario: Above 1.5445 look for further upside with 1.55 & 1.557 as targets.
Comment: The RSI lacks upward momentum.

AUDUSD

Pivot: 0.7175
Likely scenario: Short positions below 0.7175 with targets @ 0.7095 & 0.7065 in extension.
Alternative scenario: Above 0.7175 look for further upside with 0.7205 & 0.725 as targets.
Comment: The RSI is mixed to bearish.