The USD recovered a lot of lost ground versus other majors, fueled by comments that one FED member, Lockhart delivered late during the US session. Lockhart who is considered by most economists as defensive when it comes to voting in favor of raising rates, mentioned that September would be appropriate for a rate hike, unless data until then is significantly below expectations.
AUDUSD retraced from a 2 week high of 0.7429 to 0.7351 at time of writing. USDJPY once again attempted to break 124.50 to no avail so far. GBPUSD lost 100 points from yesterday and broke the significant support of 1.5550. EURUSD lost 120 pips from yesterday 1.0986 high and is trading at 1.0865 at time of writing. GOLD suffered slight also, while oil remained stable.
The main focus will now be turned to ADP employment report later today. The ADP report is expected to show 210k growth in private sectors jobs in July. With NFP on Thursday, the Dollars fate will depend on these two big reports. Do not be surprised if on Monday EURUSD will be trading at 1.0650 or 1.1100. This is how wide the range can be if NFP is off expectations.
Trading quote of the day:
“Fighting yourself is like robbing your own bank”
Green lines are resistance, Red lines are support
EURUSD
Pivot: 1.093
Likely scenario: Short positions below 1.093 with targets @ 1.0835 & 1.081 in extension.
Alternative scenario: Above 1.093 look for further upside with 1.0965 & 1.099 as targets.
Comment: The RSI has broken down its 30 level.
GBPUSD
Pivot: 1.5585
Likely scenario: Short positions below 1.5585 with targets @ 1.55 & 1.5465 in extension.
Alternative scenario: Above 1.5585 look for further upside with 1.563 & 1.568 as targets.
Comment: The RSI is bearish and calls for further downside.
AUDUSD
Pivot: 0.7345
Likely scenario: Long positions above 0.7345 with targets @ 0.7405 & 0.743 in extension.
Alternative scenario: Below 0.7345 look for further downside with 0.73 & 0.726 as targets.
Comment: A support base at 0.7345 has formed and has allowed for a temporary stabilisation.
