EU Session Bullet Report – USD Weak Ahead Of Retail Sales

A selloff in stock markets and anything that carries great risk, boosted EUR and other majors versus the USD. AS already mentioned in previous reports, the rate increase now is widely expected and already priced in. This means that risk is on the upside with any data that could prove suspicious as a catalyst that FED could possibly not rise when the time comes. In these situations high intraday volatility is possible, while the pairs still will remain in large ranges.

Crude oil dropped to its lowest in over two months and for a third straight session to 41.35 while gold posted a 6 year low at $1174. Today’s news will feature Germany’s GDP as well as US Retail Sales, PPI and consumer sentiment.

Trading quote of the day:

Time is your friend; impulse is your enemy.

Jack Bogle

Green lines are resistance, Red lines are support.

EUR/USD
Pivot: 1.0745
Likely scenario: Long positions above 1.0745 with targets @ 1.083 & 1.086 in extension.
Alternative scenario: Below 1.0745 look for further downside with 1.0705 & 1.067 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD
Pivot: 1.517
Likely scenario: Long positions above 1.517 with targets @ 1.524 & 1.5275 in extension.
Alternative scenario: Below 1.517 look for further downside with 1.514 & 1.5095 as targets.
Comment: The RSI lacks downward momentum.

AUD/USD
Pivot: 0.708
Likely scenario: Long positions above 0.708 with targets @ 0.715 & 0.717 in extension.
Alternative scenario: Below 0.708 look for further downside with 0.704 & 0.7015 as targets.
Comment: The RSI is mixed to bullish.

USD/JPY
Pivot: 123.05
Likely scenario: Short positions below 123.05 with targets @ 122 & 121.6 in extension.
Alternative scenario: Above 123.05 look for further upside with 123.4 & 123.6 as targets.
Comment: As long as 123.05 is resistance, look for choppy price action with a bearish bias.