EU Session Bullet Report
A trendless pattern with the exception of USDJPY is developing in the markets. EURUSD and GBPUSD have both traded sideways for the past 2 days, unable to take a new direction. The market is waiting for the long awaited ECB rate decision tomorrow along with cues that ECB President Mario Draghi might give regarding increasing the QE Program in order to revive the EU economy. So Far, EURUSD trades 0.15% higher at 1.1355 however it looks unable to break the 1.1370 resistance.
USDJPY is trading over 120.00 boosted by the surge in the Japanese Nikkei. So far in 2015, USDJPY range (115.855 – 125.855) in percentage has been 8.35%, which is the lowest since 1976 (Average % range from 1971 to 2014 was 17.48%).
Today's calendar is again thin. Notable exception for the day is the Bank of Canada rate decision which is expected to not be changed and remain at 0.5%. The CAD has lost its momentum since OIL failed to sustain over $50 and is trading back around $46.
Trading Quote of the Day:
“The most valuable commodity I know, is information kid”
Gordon Gekko – Wall Street – the movie
Green lines are resistance, Red lines are support
EUR/USD
Pivot: 1.1395
Likely scenario: Short positions below 1.1395 with targets @ 1.1305 & 1.1265 in extension.
Alternative scenario: Above 1.1395 look for further upside with 1.145 & 1.1495 as targets.
Comment: As long as 1.1395 is resistance, look for choppy price action with a bearish bias.
GBP/USD
Pivot: 1.541
Likely scenario: Long positions above 1.541 with targets @ 1.5465 & 1.551 in extension.
Alternative scenario: Below 1.541 look for further downside with 1.537 & 1.5325 as targets.
Comment: The next resistances are at 1.5465 and then at 1.551.
AUD/USD
Pivot: 0.7305
Likely scenario: Short positions below 0.7305 with targets @ 0.724 & 0.7225 in extension.
Alternative scenario: Above 0.7305 look for further upside with 0.7345 & 0.738 as targets.
Comment: A break below 0.724 would trigger a drop towards 0.7225.
