EU Session Bullet Report – USD reverses after Fed’s Yellen comments

September 25, 2015

Asian shares gave up gains while the USD recovered versus the EUR after comments from FED’s Yellen last night. In summary, the FED Chairwoman mentioned that she and other policy members expect a 2015 liftoff in interest rates. As a result EURUSD is trading at 1.1170 while GOLD’s rally to 1156 settled for 1146 at time of writing.

Economic data released yesterday showed that USD durable goods fell less than expected in August (2%). Meanwhile Americans seeking unemployment benefits fell showing that the economy is on the right path towards full employment. New home sales also rose more than expected which further solidifies the case for a rate hike this year.

Stocks around the world fell for a fifth day on Thursday, sliding towards two-year lows as worries lingered over global economic growth and Volkswagen’s emissions test scandal rattled European carmakers. Overall, it looks like FED’s Yellen comments have become a game changer for the time.

US GDP at 12:30 GMT is the highlight of the day in terms of economic news releases

Trading Quote of the Day: In investing, what is comfortable is rarely profitable – Robert Arnott

Currency Updates:

EURUSD

Pivot: 1.1235

Likely scenario: Short positions below 1.1235 with targets @ 1.1105 & 1.107 in extension.

Alternative scenario: Above 1.1235 look for further upside with 1.1295 & 1.133 as targets.

Comment: The RSI is bearish and calls for further downside.


USDJPY 

Pivot: 119.8

Likely scenario: Long positions above 119.8 with targets @ 120.55 & 121 in extension.

Alternative scenario: Below 119.8 look for further downside with 119.45 & 119.2 as targets.

Comment: The RSI is well directed.

GBPUSD

Pivot: 1.5285

Likely scenario: Short positions below 1.5285 with targets @ 1.515 & 1.509 in extension.

Alternative scenario: Above 1.5285 look for further upside with 1.5355 & 1.543 as targets.

Comment: The RSI lacks upward momentum.

AUDUSD

Pivot: 0.698

Likely scenario: Long positions above 0.698 with targets @ 0.706 & 0.709 in extension.

Alternative scenario: Below 0.698 look for further downside with 0.6935 & 0.69 as targets.

Comment: The pair has broken above a declining trend line.

GOLD

Pivot: 1142

Likely scenario: Long positions above 1142 with targets @ 1157 & 1162 in extension.

Alternative scenario: Below 1142 look for further downside with 1133 & 1129 as targets.

Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

USDCAD

Pivot: 1.3295

Likely scenario: Long positions above 1.3295 with targets @ 1.342 & 1.3495 in extension.

Alternative scenario: Below 1.3295 look for further downside with 1.3225 & 1.317 as targets.

Comment: The RSI lacks downward momentum.

USDCHF

Pivot: 0.973

Likely scenario: Long positions above 0.973 with targets @ 0.981 & 0.986 in extension.

Alternative scenario: Below 0.973 look for further downside with 0.9665 & 0.962 as targets.

Comment: The RSI is well directed.

OIL

Pivot: 45.4

Likely scenario: Short positions below 45.4 with targets @ 44.4 & 43.85 in extension.

Alternative scenario: Above 45.4 look for further upside with 46.1 & 46.9 as targets.

Comment: Intraday technical indicators are mixed and call for caution.

DAX

Pivot: 9780

Likely scenario: Short positions below 9780 with targets @ 9320 & 9235 in extension.

Alternative scenario: Above 9780 look for further upside with 10020 & 10175 as targets.

Comment: As long as 9780 is resistance, look for choppy price action with a bearish bias.

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