Daily Key Short Term Technical Levels Fri 06 Oct 2017

FX – Current USD strength is coming close to key inflection levels which may pause the on-going corrective rebound

• EUR/USD – Drop in progress as expected, tightened key short-term resistance to 1.1750 (minor swing high low areas of 04/05 Oct 2017) for further potential push down towards the next supports at 1.1680 follow by 1.1620.
• GBP/USD – Drop in progress as expected and met the first support/downside target of 1.3170 (printed a current intraday low of 1.3087 in today’s Asian session). Tightened key short-term resistance to 1.3190 (minor descending trendline from 04 Oct 2017 high + 50% Fibonacci retracement of the current decline from 04 Oct 2017 high) for a final potential push down towards the next support at 1.3015/3000 (lower boundary of the medium-term ascending channel from 14 Mar 2017 low + 38.2% Fibonacci retracement of the up move from  15 Jan 2017 low to 20 Sep 2017 high).
• AUD/USD -  Downside acceleration as expected through the bearish break of the predefined 0.7810 trigger level. Right now, it is now coming close to the significant support zone of 0.7750/30 (former major range resistance from Apr 2016). Prefer to turn neutral now between 0.7730 and 0.7790 (former minor swing low of 03 Oct 2017).
• NZD/USD – Drop in progress as expected. Short-term downtrend from 29 Sep 2017 high remains intact below tightened key short-term resistance now at 0.7150 (former minor swing low areas of 03 Oct/05 Oct 2017 + upper boundary of descending channel from 21 Sep 2017 high) for a final potential push down towards the next supports at 0.7080 follow by 0.7050/7040 (lower boundary of descending channel from 21 Sep 2017 high + former swing high areas of 21 Mar/20 Apr 2017).
• USD/JPY -  No change, 112.40/30 key short-term support to maintain bullish bias for another round of potential up move towards the next resistances at  113.30 follow by 113.50/60.

• Gold – No change, maintain bearish bias below 1277/1282 key short-term resistance for a further potential decline towards the next supports coming in at 1260 follow by  1255 (lower boundary of medium-term descending channel from 08 Sep 2017 high + Fibonacci projection cluster).
• WTI Crude (Nov 2017) – Challenging the 50.70 key short-term resistance. Tolerate the excess to 51.22 (yesterday’s high + former minor range support of 29 Sep 2017 + former ascending channel support from 31 Aug 2017 low ) to maintain bearish bias for a potential push down towards the next support at 49.00 (Fibonacci cluster).

Stock Indices (CFD) – No signs of bullish exhaustion

• US SP 500 – Continued to rally as expected , surpassed the short-term resistance/target at 2543/45 and even met the medium-term resistance level of 2550 set for this week (printed a fresh new all-time high of 2552) (refer to weekly technical outlook report). Short-term bullish impulsive upleg from 28 Sep 2017 minor swing low remains intact with next resistance coming in at 2565/70 (upper boundary of ascending channel from 29 Aug 2017 low + Fibonacci projection cluster).  Tightened key short-term support now to 2540 (former high of 05 Oct 2017 + minor ascending trendline from 29 Sep 2017 low).
• Japan 225 – Continued to inch high as expected but has not surpassed this week high of 20689 seen on 04 Oct 2017 due to a minor sideways range environment seen in the USD/JPY.  No change, short-term bullish impulsive upleg in place since 29 Sep 2017 minor swing low remains intact with key short-term support at 20580 for a further potential push up towards the next short-term resistance at 20790 in the first step.
• Hong Kong 50 – Gapped up and retested the 28570 medium-term resistance (refer to weekly technical outlook report).  The earlier impending bearish “Ascending Wedge” configuration from 11 Aug 2017 low has been negated as the daily RSI oscillator is now breaking above its resistance at the 60% level. An hourly close above 28570 is likely to validate a further potential up move towards the next resistance at 29100 (Fibonacci projection cluster) in the first step. Key short-term support will be at  28300(minor swing low of 04 Oct 2017 + 23.6% Fibonacci retracement of the current up move from 28 Sep 2017 low).
•  Australia 200 – Rebounded as expected from the medium-term range support of 5660 and met the short-term resistance/target of 5710. Maintain bullish bias above 5660 for a further potential push up towards next resistance at 5750 (minor swing high area of 02 Oct) within a medium-term range configuration in place since Jun 2017.
• Germany 30 – Rise in progress as expected. No change, short-term bullish impulsive upleg in place since 26 Sep 2017 minor swing low remains intact with tightened key short-term support to 12890 (04 Oct 2017 low + 23.6% Fibonacci retracement of the on-going rally from 26 Sep 2017 low). Next short-term resistance remains at 13150 (upper boundary of ascending channel from 29 Aug 2017 low + Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform

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