Daily Key Short Term Technical Levels Fri 08 Sep 2017

FX – USD medium-term downtrend resumes

• EUR/USD – Clear break above 1.1980 key short-term resistance after ECB’s press conference has invalidated the short-term corrective decline scenario. Right now, it is likely to resume the potential bullish impulsive upleg of its medium-term uptrend movement in place since 22 February 2017 low. Key short-term support now at  1.1975/1930 with short-term resistance coming in at  1.2150/65 (former major swing low area of Jul 2012 + Fibonacci projection cluster).
• GBP/USD - Broke above 1.3080 key short-term resistance that invalidated the corrective decline scenario. It is likely to resume the  potential bullish impulsive upleg of its medium-term uptrend movement in place since 13 March 2017 low. Key short-term support now at 1.3070 (former minor swing high of 06 Sep 2017 + lower boundary of minor ascending channel from 05 Sep 2017 low) with short-term resistance at 1.3180/3200 (upper boundary of minor ascending channel from 05 Sep 2017 low + 1.618 Fibonacci projection from 24 Aug 2017 minor swing low).
• AUD/USD – Hourly close above 0.8065 key medium-term resistance has invalidated the short-term corrective decline scenario. Right now, potential bullish impulsive upleg resumes within its medium-term uptrend in place since 09 May 2017 low.  Key short-term support now at 0.8040 (former minor swing high of 07 Sep 2017) with short-term resistance coming in at 0.8170 (former major swing low area of May 2010 + Fibonacci projection cluster).
• NZD/USD -  Broke above the 0.7240 key medium-term resistance that invalidated the short-term corrective decline scenario. Right now, potential bullish impulsive upleg resumes within its medium-term uptrend in place since 10 May 2017 low. Short-term support now at  0.7260 (former minor swing high areas of 05/06 Sep 2017) with short-term resistance now at 0.7380/90 (Fibonacci cluster).
• USD/JPY – Challenged the key 108.30/108.15 key medium-term support without a clear bearish breakdown. But no conviction for a recovery at this juncture due to USD weakness seen in the rest of the majors. Turn neutral now between 108.15 and 109.00 (minor descending trendline resistance from 31 Aug 2017 low). An hourly close below 108.15 is likely to open up scope for a potential bearish impulsive downleg to target the next support at 107.40/10 (former major swing high area of 20 Jul 2016 + Fibonacci projection cluster).

Commodities

• Gold -  Rise in progress, short-term uptrend remains intact above tightened key short-term support at 1342 (former minor swing high area of 06 Sep 2017 + minor ascending trendline from 31 Aug 2017 low). Right now, it is coming close to the  intermediate resistance zone of 1356/58 without any clear bullish exhaustion signs in conjunction with a weak USD. Next resistance with be at 1375/78  (the major swing high area of July2017).
• WTI Crude (Oct 2017) – Still below 49.42 key medium-term descending trendline resistance in place since 23 Feb 2017 high. Remain neutral between 49.42 and 48.50.

Stock Indices (CFD) –Still holding above supports

• US SP 500 –Tested the 2467 upside trigger level again. No change, 2453 remains the key medium-term support and a break above 2467 is required to trigger a potential short-term uptrend movement to target the next resistance at 2485/90 zone in the first step.
• Japan 225 – Still holding above the 19270/260 key medium-term range support. Turn neutral now between 19500 and 19270/260 due to the risk of a bearish breakdown in the USD/JPY below key 108.15 medium-term support.
•  Hong Kong 50 – A weak USD tends to benefit China and Hong Kong stock markets. Key short-term support at 27400 and a break above 27820 (minor swing high area of 04 Sep/07 Sep 2017) is likely to resume its potential short-term uptrend movement towards the next resistance at 28300.
• Australia 200 – Still holding at the 5680/5660 key medium-term range support with hourly Stochastic oscillator back at an extreme oversold level. Potential short-term bounce with intermediate resistance at 5720/30 (minor swing high areas of 05 Sep/07 Sep 2017).
• Germany 30 – Yesterday’s strong push up in the EUR/USD post ECB did not trigger a negative feedback loop into the Index as it traded sideways above the 12180/150 key short-term support. However, it still needs to have a break above 12340 to validate a potential  short-term bullish upleg towards next resistance at 12550/670.

*Levels are obtained from City Index Advantage TraderPro platform 

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