The USD rebounded yesterday and stayed firm overnight with the exception being against the NZD which rose after Russia lifted an import ban on Dairy products coming from New Zealand.
EURUSD is lower, however there is a significant Fibonacci support at 1.1060 that needs to break, in order for the path to open towards the 1.0980 key support. GBPUSD is also lower and currently testing 1.5570 support. A break below would open the way for a 1.5530 test. USD is generally trading higher compared to last few trading days as the market focus has shifted from the CNY devaluation concerns to the FED rate hike expectations. Reserve Bank of Australia also released its meeting minutes overnight which indicated that interest rates might stay on hold for a while as the weaker AUD supports the economy.
For today the Fed publishes minutes from its July meeting and the market will be looking for any clues regarding when rates will begin to be normalized. If you are trading the GBPUSD keep in mind that UK releases its inflation data at 08:30 GMT.
Trading Quote of the Day: Predetermine the exit strategy for all trades. Always have a plan for selling, as well as for buying
USDCAD
Pivot: 1.312
Likely scenario: Short positions below 1.312 with targets @ 1.3055 & 1.301 in extension.
Alternative scenario: Above 1.312 look for further upside with 1.315 & 1.318 as targets.
Comment: As long as 1.312 is resistance, look for choppy price action with a bearish bias.
USDCHF
Pivot: 0.98
Likely scenario: Short positions below 0.98 with targets @ 0.972 & 0.967 in extension.
Alternative scenario: Above 0.98 look for further upside with 0.986 & 0.9905 as targets.
Comment: The upward potential is likely to be limited by the resistance at 0.98.
GOLD
Pivot: 1112
Likely scenario: Long positions above 1112 with targets @ 1127 & 1135 in extension.
Alternative scenario: Below 1112 look for further downside with 1102 & 1093.7 as targets.
Comment: A support base at 1112 has formed and has allowed for a temporary stabilisation.
OIL
Pivot: 43
Likely scenario: Short positions below 43 with targets @ 41.33 & 40.9 in extension.
Alternative scenario: Above 43 look for further upside with 43.85 & 44.4 as targets.
Comment: As long as 43 is resistance, likely decline to 41.33.
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