US Session Bullet Report

EURUSD as well as GBPUSD and commodity currencies rebounded versus the USD during the European Session in a relative quiet fashion. In EZ, German PPI posted a decline of 0.4% however the key data will be US building Permits and Housing Starts later on.

Key for Thursdays ECB meeting were the German inflation numbers that showed another month of deflation at -0.4% versus -0.1% expected. With these numbers the ECB will be under a lot of pressure to respond (more will be analyzed in this week’s hot topic theme). The ECB has bought hundreds of billions since March this year under QE, but the economy hasn’t responded. Analysts expect an additional move before the end of the year (December most likely), but traders should not discount the possibility of further stimulus at the ECB policy meeting on Thursday. If the ECB does make a move on Thursday, we can expect the euro to lose ground against the dollar.

For the day, the strongest currency is the AUD which was boosted by RBA minutes overnight followed by NZD and CAD. The weakest is the JPY with USDJPY (+0.24%) at 119.75

Trading Quote of the Day:

“Have the patience to wait, the courage to get out and the integrity to follow your plan” – John Carter
Green lines are resistance, Red lines are support EURUSD

EUR/USD
Pivot: 1.1395
Likely scenario: Short positions below 1.1395 with targets @ 1.134 & 1.1305 in extension.
Alternative scenario: Above 1.1395 look for further upside with 1.145 & 1.1495 as targets.
Comment: The RSI lacks upward momentum.

GBPUSD

Pivot: 1.541
Likely scenario: Long positions above 1.541 with targets @ 1.551 & 1.5565 in extension.
Alternative scenario: Below 1.541 look for further downside with 1.537 & 1.5325 as targets.
Comment: The RSI lacks downward momentum.

AUDUSD
Pivot: 0.7305
Likely scenario: Short positions below 0.7305 with targets @ 0.724 & 0.7225 in extension.
Alternative scenario: Above 0.7305 look for further upside with 0.7345 & 0.738 as targets.
Comment: The RSI lacks upward momentum.