It was a volatile session so far, which was mainly driven from the Chinese stock meltdown. Another day, another 8, 5% drop in shanghai making this one of the biggest daily drops ever. EURUSD spiked higher until 1.1112 (two week high) however the rally was contained within its descending channel. EURUSD boost is attributed to German IFO data that showed expansion in July, the first in 3 months. Gold rebounded temporarily to 1105.17 yet was sold to session lows of 1091 based on the China slump. With commodity prices expected to remain weak, watch for AUD, NZD, CAD and NOK to further underperform.
On another note, US durable goods were just released and the news came out much stronger than anticipated, however the USD did not get excited by the news. Trading is likely to remain sentiment driven and following equity moves. Keep an eye on GOLD, it just broke today's critical pivot and it doesn't look pretty.
Trading Quote of the Day:
“If you are not willing to learn, no one can help you, if you are determined to learn, no one can stop you”
Green lines are resistance, Red lines are support
EURUSD
Pivot: 1.099
Likely scenario: Long positions above 1.099 with targets @ 1.1125 & 1.116 in extension.
Alternative scenario: Below 1.099 look for further downside with 1.0965 & 1.092 as targets.
Comment: The RSI is well directed.
GBPUSD
Pivot: 1.5495
Likely scenario: Long positions above 1.5495 with targets @ 1.557 & 1.561 in extension.
Alternative scenario: Below 1.5495 look for further downside with 1.5465 & 1.5445 as targets.
Comment: The RSI is mixed to bullish.
AUDUSD
Pivot: 0.734
Likely scenario: Short positions below 0.734 with targets @ 0.7255 & 0.723 in extension.
Alternative scenario: Above 0.734 look for further upside with 0.738 & 0.7415 as targets.
Comment: The RSI is mixed to bearish.
USDJPY
Pivot: 123.85
Likely scenario: Short positions below 123.85 with targets @ 123 & 122.9 in extension.
Alternative scenario: Above 123.85 look for further upside with 124.15 & 124.45 as targets.
Comment: The RSI is mixed to bearish.
