EU Session Bullet Report – USD In Range Ahead Of GDP

EURUSD is trading near its post April lows at 1.0620. Two attempts to break 1.06 so far were halted as buyers defended that psychological level. Overall, markets were quiet overnight with EURUSD trading in tight range of 1.0620-1.0645. GBPUSD also looking very bearish as it is unable to bounce significantly. The pair has support at 1.5090 while 1.5020 would follow. AUD/USD has recovered slightly after yesterday’s sharp decline in the Asian session. The pair rose from 0.7165 to 0.7205 and key resistance is now seen at 0.7245. Now that a December hike is nearly a done deal and priced in, the expectations on policy path will be the main drive in dollar’s exchange rate. Coming ahead, German IFO survey, Bank of England MPC testimonies and the second estimate of the US Q3 GDP will draw market attention today.

Quote of the day: “A handful of patience is worth a bushel of brains” – Dutch Proverb

Green lines are resistance, Red lines are support.

EUR/USD

Pivot: 1.0665

Likely scenario: Short positions below 1.0665 with targets @ 1.06 & 1.056 in extension.

Alternative scenario: Above 1.0665 look for further upside with 1.071 & 1.0765 as targets.

Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.

GBP/USD

Pivot: 1.52

Likely scenario: Short positions below 1.52 with targets @ 1.509 & 1.5055 in extension.

Alternative scenario: Above 1.52 look for further upside with 1.523 & 1.5255 as targets.

Comment: As long as 1.52 is resistance, look for choppy price action with a bearish bias.

AUD/USD

Pivot: 0.7215

Likely scenario: Short positions below 0.7215 with targets @ 0.715 & 0.7115 in extension.

Alternative scenario: Above 0.7215 look for further upside with 0.725 & 0.727 as targets.

Comment: As long as the resistance at 0.7215 is not surpassed, the risk of the break below 0.715 remains high.

USD/JPY