Yesterday the GBPUSD surged to over 1.5715 on data showing a huge pickup in inflation which raised Interest rates rise speculation. On the other hand USD was mixed with a rise in housing starts but a drop in building permits. USD bulls are now waiting for the US inflation data and FOMC minutes tonight in order to determine further direction. EURUSD broke a significant support at 1.1060, posting 1.1015 lows. The most traded pair now is in risk of further declines with 1.1010, 1.0960 and 1.0920 as notable supports.
During the Asian session, another round of heavy selling of Chinese stocks (-3.12%) caused the AUD and NZD to drop close to 0.73 and under 0.66 respectively. It will be a lackluster day for the EU session, which lacks any data releases, however volatility should pick up during the US session, since the FOMC minutes of the July meeting and CPI data (inflation) will be released.
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USDCAD
Pivot: 1.3085
Likely scenario: Short positions below 1.3085 with targets @ 1.301 & 1.2985 in extension.
Alternative scenario: Above 1.3085 look for further upside with 1.3125 & 1.315 as targets.
Comment: The RSI is bearish and calls for further downside.
USDCHF
Pivot: 0.98
Likely scenario: Short positions below 0.98 with targets @ 0.9745 & 0.972 in extension.
Alternative scenario: Above 0.98 look for further upside with 0.986 & 0.9905 as targets.
Comment: The RSI lacks upward momentum.
GOLD
Pivot: 1121
Likely scenario: Short positions below 1121 with targets @ 1109 & 1101.5 in extension.
Alternative scenario: Above 1121 look for further upside with 1127 & 1135 as targets.
Comment: As long as 1121 is resistance, likely decline to 1109.
OIL
Pivot: 42.7
Likely scenario: Short positions below 42.7 with targets @ 41.33 & 40.9 in extension.
Alternative scenario: Above 42.7 look for further upside with 43 & 43.85 as targets.
Comment: As long as 42.7 is resistance, likely decline to 41.33.
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