Daily Key Short Term Technical Levels Wed 13 Sep 2017

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By :  ,  Financial Analyst

FX – Potential USD weakness resurgence with USD/JPY approaching risk/resistance level

  • EUR/USD – Tested the 1.1930 key short-term support but no hourly close below it. No change, short-term uptrend movement from 31 August 2017 with short-term resistances now at 1.2030 follow by 1.2092 (08 Sep 2017 high) next.
  • GBP/USD – Rallied and hit the predefined short-term resistances zone/target of 1.3230/3300 as expected. No clear signs of bullish exhaustion yet, key short-term support now tightened to  1.3230/3220 (former minor swing high of 08/11 Sep 2017 + minor ascending trendline from 05 Sep 2017 low) to maintain short-term uptrend movement in place since 05 September 2017 low with next resistance coming in at 1.3400/3445 (Fibonacci projection cluster + medium-term swing high area of  15 Jul/06 Sep 2016).
  • AUD/USD – Elements remain mix, maintain neutrality stance between 0.7960 and 0.8060 (former minor swing high of 11 Sep 2017 + 50% Fibonacci retracement of current pull-back from 08 Sep 2017 high + pull-back resistance of former minor ascending trendline support from 31 Aug 2017).
  • NZD/USD – Strong push up right above the predefined key medium-term support of 0.7210/0.7200. No change, uptrend bias remains intact with short-term resistances at 0.7337 follow by 0.7370 (swing high area of 08/10 Aug 2017 + upper boundary of ascending channel in place since  31 Aug 2017 low  + Fibonacci projection).
  • USD/JPY – No pull-back and continued its rally towards the short-term resistances/target at 110.10/30. Right now, it is approaching close to a key medium-term resistance of 110.50 (descending range trendline from 04 Aug 2017 high + 1.618 Fibonacci projection from 08 Sep 2017 low).  Both hourly RSI & Stochastic oscillator has flashed bearish divergence signals. A break below 109.54 is likely to validate a potential corrective down movement to retrace the swift rally from 08 September 2017 low with next support coming in at 108.80/45 (former congestion zone + 50%/61.8% Fibonacci retracement of the current rally from 08 Sep 2017 low).

Commodities

  • Gold – No change as it remains below 1346 key short-term resistance for a potential short-term corrective decline towards the next  support at 1310 in the first step within a medium-term uptrend in place since 10 July 2017 low.
  • WTI Crude (Oct 2017) – No change, still below 48.90 key short-term resistance for a potential push down to retest the 46.70 support before 45.60 (31 Aug 2017 low) within a longer-term complex range configuration in place since the start of 2017.

Stock Indices (CFD) –Mix bag with S&P 500 still showing risk of a minor pull-back

  • US SP 500 – Pushed up and tested the 2495 resistance/risk level (printed a high of 2496). The hourly RSI oscillator has continued to post another bearish divergence signal at its overbought region which indicates a slow-down in short-term upside momentum of price action. A break below 2490 is likely to trigger the potential minor corrective pull-back to test the support at 2480/77 within a medium-term uptrend in place since 29 August 2017 low.
  • Japan 225 – Broke above the 19800 medium-term range resistance but lack of conviction to validate a bullish exit from range at this juncture due to USD/JPY that is right below its 110.50 resistance/risk level. Turn neutral first between 20000 (descending trendline from 20 Jun 2017 high) and 19750.
  • Hong Kong 50 – No change, short-term uptrend movement remains intact above tightened key short-term support at 27760 (former minor swing high of 07 Sep 2017 + pull-back support of former minor descending trendline from 30 Aug 2017 high) with short-term resistances at 28160 and 28300.
  • Australia 200 – Pushed up and it is now hovering right below its medium-term range resistance of 5805 (see weekly technical outlook report). In addition, the 4 hour Stochastic oscillator has flashed a bearish divergence signal at its overbought region. Now risk of a pull-back within its range configuration in place since June 2017 with short-term support at 5724/17.
  • Germany 30 – No change, still below the 12570 key short-term resistance/risk level for a potential minor pull-back towards the 12360/340 short-term support zone.

*Levels are obtained from City Index Advantage TraderPro platform

Disclaimer

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.


  

Related tags: Commodities Forex Indices

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