Sample Category Title

Pivot (invalidation): 1213.00

Our preference Long positions above 1213.00 with targets at 1219.50 & 1222.00 in extension.

Alternative scenario Below 1213.00 look for further downside with 1210.50 & 1207.00 as targets.

Comment The RSI advocates for further upside.

Pivot (invalidation): 1.1520

Our preference Short positions below 1.1520 with targets at 1.1490 & 1.1475 in extension.

Alternative scenario Above 1.1520 look for further upside with 1.1540 & 1.1560 as targets.

Comment As Long as the resistance at 1.1520 is not surpassed, the risk of the break below 1.1490 remains high.

Pivot (invalidation): 0.8905

Our preference Short positions below 0.8905 with targets at 0.8885 & 0.8875 in extension.

Alternative scenario Above 0.8905 look for further upside with 0.8915 & 0.8925 as targets.

Comment The upward potential is likely to be limited by the resistance at 0.8905.

Pivot (invalidation): 7415

Our preference Short positions below 7415 with targets at 7000 & 6770 in extension.

Alternative scenario Above 7415 look for further upside with 7590 & 7780 as targets.

Comment A break below 7000 would trigger a drop towards 6770

XAUUSD (1216.03): Gold prices turned bullish on Friday, but the consolidation continues. The daily chart signals a potential bullish divergence on the Stochastics. This could perhaps signal an upside break out in the near-term. Gold will need to break out above 1219.75 level of resistance to confirm this upside. Alternately, on the 4-hour chart, we expect the consolidation to continue within the 1219.75 resistance level and previous lows at 1204.50.

USDJPY (111.32): The USDJPY currency pair was weaker on Friday extending its three-day decline. Price action stalled near the support level at 111.13 - 110.85 region. This could potentially stall the declines in the near-term. However, if there is a break out from this level, the currency pair could be seen posting strong declines. Price action is currently signaling a descending triangle pattern being formed with the baseline support established at the 111.13 - 110.85 handle.

EURUSD (1.1563): The Common Currency was seen extending its declines by Friday's close. Price action is now seen trading close to the support level at 1.1540. The price action marks nearly a month and a half of sideways range between 1.1730 and 1.1540. In the near-term, the currency pair could be seen rebounding off the support level at 1.1540. If this scenario plays out, we expect to see the ranging price action being maintained. In the event that the currency pair breaks below 1.1540 further declines could be anticipated.

The U.S. Dollar was seen trading mixed by Friday's close. The commodity risk currencies were the biggest gainers of the day including Gold, which advanced 0.52% by Friday's close. The Euro and the Pound Sterling were seen trading at weaker levels.

The July Payrolls report showed that the U.S. economy added 157,000 jobs during the month. The headline missed estimates of 191k. But the unemployment rate fell to 3.9% from 4.0% previously. Wage growth was also seen advancing at a pace of 0.3% on the month as expected. This pushed the yearly average wages to 2.7%.

Elsewhere, the UK's services PMI was weaker than expected, falling to 53.5 in July. This was a weaker print compared to June's headline of 55.1

Looking ahead, the economic calendar today is very light. The European trading session will be marked by the release of the German Factory Orders report which is expected to show a 0.3% decline. Later, the Eurozone Sentix Investor Confidence report will be coming out with the index forecast to rise to 12.8.

The British pound remains under heavy selling pressure against the US Dollar in early Monday-trading, after reports over-the-weekend that the United Kingdom is moving closer to a Brexit no-deal. The GBPUSD pair will likely continue to weaken while trading below the 1.3026 level, as it represents a key former trading-low from last year. Caution is still warranted when selling the GBP/USD pair on a medium-term basis, as the MACD indicator on the daily time frame is pointing to bullish price divergence.

The GBPUSD pair is strongly bearish while trading below the 1.3026 level, key support is found at the 1.2957 and 1.2880 levels.

If the GBPUSD pair moves above the 1.3026 level, buyers may target the 1.3044 and 1.3070 resistance levels.

The euro continues to trade towards the lowest-levels of 2018 against the greenback, following Friday’s US Nonfarm payrolls job report. The downside in the EURUSD pair is likely to accelerate if sellers can hold price below the 1.1550 level, as it represents the neckline of a large head and shoulder pattern across the daily time frame. Buyers will need to move the price back above 1.1630 resistance level to negate the bearish sentiment surrounding the euro.

The EURUSD pair is strongly bearish while trading below the 1.1550 level, key support is found at the 1.1507 and 1.1425 levels.

If the EURUSD pair trades above the 1.1630 level, buyers will likely test toward the 1.1650 and 1.1681 resistance levels.