Yesterday was a day wrapped around FED Minutes. For the USD, the markets perceived the FOMC minutes down as an indication of further delay in raising interest rates. The committee cited global economic developments are likely to put downward pressure on inflation in the near term. All in all, the minutes revealed that the decision to keep rates unchanged in September was not a “close call” as Yellen mentioned in a conference after the September event. The low interest environment boosted stock markets globally with all major indices closing in the greens.
In UK, although BoE decided to keep rates unchanged also, what boosted the GBP was the fact that the central bank is not worried that much over China and that they see inflation concerns are very short term due to the current price of oil. This indicates that a rate rise from UK could happen any moment we see an upswing in commodity and energy prices.
In the markets, Crude oil is trading over $50, and gold spiked to $1151, AUDUSD is at session highs at 0.7287 and USDCAD down to 1.2961. GBPUSD is trading close to 1.5400 and EURUSD at 1.1290 after touching 1.1325.
Trading quote of the day: “We want to perceive ourselves as winners, but successful traders always focus on their losses” Peter Borish
USDCAD
Pivot: 1.307
Likely scenario: Short positions below 1.307 with targets @ 1.295 & 1.29 in extension.
Alternative scenario: Above 1.307 look for further upside with 1.312 & 1.317 as targets.
Comment: The RSI is bearish and calls for further decline.
USDCHF
Pivot: 0.9715
Likely scenario: Short positions below 0.9715 with targets @ 0.964 & 0.96 in extension.
Alternative scenario: Above 0.9715 look for further upside with 0.973 & 0.9765 as targets.
Comment: The RSI is mixed to bearish.
OIL
Pivot: 48.35
Likely scenario: Long positions above 48.35 with targets @ 51.4 & 52 in extension.
Alternative scenario: Below 48.35 look for further downside with 47.7 & 46.9 as targets.
Comment: The RSI is well directed.
DAX
Pivot: 10800
Likely scenario: Long positions above 10800 with targets @ 11900 & 12390 in extension.
Alternative scenario: Below 10800 look for further downside with 10450 & 10000 as targets.
Comment: The RSI calls for a rebound.
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