NFP numbers dissapointed on Friday raising concerns that the global slowdown may be taking its toll on the US economy. Despite the lower than expected numbers, unemployment did fall to its lowest level in more than 5 years providing some light at the end of the tunnel.
US stocks closed lower as NFP data gave little comfort to investors seeking direction as to what the Fed will do with interest rates.
This morning in Asia, trading has been subdued with no significant movers as the uncertaintly continues . The US and Canada enjoy a public holiday today and calendar wise, very little news.
Trading quote of the day: “Have no fear of perfection – you’ll never reach it.” – Salvador Dalí
Currency Updates:
EURUSD
Pivot: 1.1115
Likely scenario: Long positions above 1.1115 with targets @ 1.121 & 1.126 in extension.
Alternative scenario: Below 1.1115 look for further downside with 1.1085 & 1.105 as targets.
Comment: The RSI lacks downward momentum.
USDJPY
Pivot: 119.7
Likely scenario: Short positions below 119.7 with targets @ 118.55 & 117.8 in extension.
Alternative scenario: Above 119.7 look for further upside with 120.2 & 120.65 as targets.
Comment: The upward potential is likely to be limited by the resistance at 119.7.
GBPUSD
Pivot: 1.5215
Likely scenario: Short positions below 1.5215 with targets @ 1.515 & 1.512 in extension.
Alternative scenario: Above 1.5215 look for further upside with 1.526 & 1.531 as targets.
Comment: As long as 1.5215 is resistance, look for choppy price action with a bearish bias.
AUDUSD
Pivot: 0.699
Likely scenario: Short positions below 0.699 with targets @ 0.69 & 0.685 in extension.
Alternative scenario: Above 0.699 look for further upside with 0.702 & 0.7065 as targets.
Comment: As long as 0.699 is resistance, look for choppy price action with a bearish bias.
GOLD
Pivot: 1126.7
Likely scenario: Short positions below 1126.7 with targets @ 1114 & 1110 in extension.
Alternative scenario: Above 1126.7 look for further upside with 1130.6 & 1134.5 as targets.
Comment: As long as 1126.7 is resistance, likely decline to 1114.
USDCAD
Pivot: 1.322
Likely scenario: Long positions above 1.322 with targets @ 1.329 & 1.3325 in extension.
Alternative scenario: Below 1.322 look for further downside with 1.3175 & 1.313 as targets.
Comment: The RSI is mixed to bullish
USDCHF
Pivot: 0.9675
Likely scenario: Long positions above 0.9675 with targets @ 0.9775 & 0.982 in extension.
Alternative scenario: Below 0.9675 look for further downside with 0.9635 & 0.9565 as targets.
Comment: A support base at 0.9675 has formed and has allowed for a temporary stabilisation.
OIL
Pivot: 47.25
Likely scenario: Short positions below 47.25 with targets @ 43.2 & 41.75 in extension.
Alternative scenario: Above 47.25 look for further upside with 48.45 & 49.4 as targets.
Comment: As long as 47.25 is resistance, likely decline to 43.2.
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