US Session Bullet Report

Eurozone stock markets are trading lower today as data released showed growth in the region had slowed during August.

The German DAX opened down more than 200 points this morning as the Asian selloff continued earlier today. The Japan225 was the biggest loser with the index trading down more than 750 points from its open. The Australian ASX also traded lower by some 100 points at time of writing.

The news was not all doom and gloom however. Unemployment in the Eurozone enexpectedly fell to its lowest level in 3 years falling to 10.9% from 11.1% the previous month.
With ECB policy makers set to meet on Thrusday, this will come as a good indicator that the region is on the mend. However, continued economic slowdown coupled with recent comments from IMF director Lagarde, warning that global growth will be weaker than forecast just two weeks ago will no doubt dampen the mood.

It seems that news is king at the moment with every new session throwing up its twists and turns. As improving data continues to flow from the US, again there is talk of a rate hike sooner rather than later.

At 14:00GMT we have important manufacturing data from the US. Better than expected figures will no doubt increase talk of an interest rate hike, although worse than expected figures could be the clearest indication yet that the global slowdown is starting to way on the US.

Trading quote of the day:

“It is not enough to have a good mind. The main thing is to use it well.”

– Rene Descartes

EURUSD
Pivot: 1.12
Likely scenario: Long positions above 1.12 with targets @ 1.135 & 1.14 in extension.
Alternative scenario: Below 1.12 look for further downside with 1.1155 & 1.11 as targets.
Comment: The RSI lacks downward momentum.

GBPUSD

Pivot: 1.5445
Likely scenario: Short positions below 1.5445 with targets @ 1.5265 & 1.521 in extension.
Alternative scenario: Above 1.5445 look for further upside with 1.55 & 1.557 as targets.
Comment: The RSI is badly directed.

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