US Session Bullet Report

Gold is testing the 50 day moving average after dropping to another session low at $1140. Overall some short covering on the last day of the month is also responsible for the USD weakness. Apparent weakness is against the EURO which has rebounded to 1.1050 despite negative US data. It looks like the market is not convinced from Wednesdays FOMC clues that indicated that the FED will raise rates. Hence the price action favors a mild USD correction (weakness). While USD is down versus European majors, it is down versus commodity currencies. Meanwhile, oil prices are poised to end the week in gains despite the big supplies of stock in inventories. Next week will be a catalyst as to future direction for the USD but also the GBP. Bank of England will have another Super Thursday with the simultaneous release of the rate decision, vote, minutes, and Inflation Report while US will release the market driving NFP numbers.

Trading Quote of the Day:”A great trader is like a great athlete. You have to have natural skills, but you have to train yourself how to use them.” Marty Schwartz

Green lines are resistance, Red lines are support

EUR/USD
Pivot: 1.0965
Likely scenario: Long positions above 1.0965 with targets @ 1.11 & 1.114 in extension.
Alternative scenario: Below 1.0965 look for further downside with 1.0935 & 1.0895 as targets.
Comment: The RSI is well directed.

GBP/USD

Pivot: 1.53
Likely scenario: Long positions above 1.53 with targets @ 1.5395 & 1.542 in extension.
Alternative scenario: Below 1.53 look for further downside with 1.5275 & 1.525 as targets.
Comment: The RSI is well directed.

AUD/USD

Pivot: 0.7065
Likely scenario: Long positions above 0.7065 with targets @ 0.716 & 0.72 in extension.
Alternative scenario: Below 0.7065 look for further downside with 0.7015 & 0.6975 as targets.
Comment: The RSI is well directed.

USD/JPY

Pivot: 121.2
Likely scenario: Short positions below 121.2 with targets @ 120.15 & 119.95 in extension.
Alternative scenario: Above 121.2 look for further upside with 121.5 & 121.75 as targets.
Comment: The RSI is badly directed.