Daily Key Short Term Technical Levels Fri 13 Oct 2017

FX – USD short-term downtrend remains intact with GBP/USD rebounded from a significant support

• EUR/USD – Pull-backed from its recent high of 1.1878 and stalled right at the neutrality range support of 1.1825 as per highlighted yesterday. In addition, the hourly Stochastic oscillator has shaped a bullish divergence signal at its oversold region with the hourly RSI oscillator breaking above the 50% level. These observations suggest that short-term upside momentum has resurfaced. Turn bullish with 1.1825 as the key short-term support for a further potential push up towards the next intermediate resistance at 1.1930/60 (pull-back resistance of the former ascending channel support from 07 Apr 2017 low + Fibonacci cluster).
• GBP/USD – Pierced below the tightened 1.3210 key short-term support after a speech from both U.K & EU chief negotiators that indicated another stalemate in Brexit talks. Technically, the yesterday’s  push down is considered as a “noise” and the elements still remain positive for further potential GBP strength in the short-term.  The decline seen yesterday has stalled right at the pull-back support of the former descending trendline resistance from 21 Sep 2017 high & the 61.8% Fibonacci retracement of the recent rally from 06 Oct 2017 low to  12 Oct 2017 high at  1.3120. Thereafter, it rebounded and head up towards the previous minor swing high of 1.3265. Maintain bullish bias above 1.3185 key short-term support (61.8% Fibonacci retracement of the current recovery from yesterday (12 Oct) low of 1.3121) for a further potential push up towards at 1.3350/60 (former minor swing low of 28 Sep 2017 + Fibonacci cluster).
• AUD/USD – Inched lower but managed to stall right above the predefined neutrality range support of 0.7795 as per highlighted yesterday (printed a low of 0.7807). Technical elements have started to turn positive as it is breaking above 0.7830. Turn bullish with 0.7807 as key short-term support (former minor swing high of 11 Oct 2017) for a further potential push up towards the next intermediate resistances at 0.7860 follow by 0.7925 (former swing low area of 22 Sep 2017 + descending trendline from 08 Sep 2017 high + Fibonacci cluster).
• NZD/USD -  Short-term resistance/target hit at 0.7140 as expected. No signs of exhaustion, maintain bullish bias above 0.7100 tightened key short-term support (former minor swing high of 11 Oct 2017 + minor ascending trendline from 11 Oct 2017 low) for a further potential push up towards the next intermediate resistance of 0.7200 (swing high area of  04 Oct 2017 + 38.2% Fibonacci retracement of the decline from 21 Sep  2017 high to 06 Oct 2017 low).
• USD/JPY – Drop in progress as expected, tightened key short-term resistance to 112.50 (minor swing high area of 11 Oct 2017 + descending trendline from 11 Oct 2017 high) for a further potential push down towards the 111.50 support (minor swing low area of 26 Sep 2017).

 Commodities – Further potential upside in Gold

• Gold – No change, short-term uptrend from 06 Oct 2017 low remains intact, key short-term support remains at 1289 (lower boundary of short-term ascending channel from 06 Oct 2017 low + pull-back support of former minor range consolidation from 10 Oct 2017 low) for a further potential push up towards the next resistances at 1304 and 1309 (upper boundary of short-term ascending channel from 06 Oct 2017 low + Fibonacci cluster).
• WTI Crude (Nov 2017) – No change, maintain neutrality stance between 51.42 & 49.95.

Stock Indices (CFD) – Uptrend remains intact with potential bullish exit for Australia

• US SP 500 – Challenged the tightened 2551 key short-term support (printed an intraday low of 2548 before it closed back at 2551 at the end of the U.S. session) as market digested the Q3 earnings from Citi & JPM.  No change from a technical perspective, maintain bullish bias above 2551/48 key short-term support for another round of potential impulsive upleg towards the next resistance coming in at 2565/70 (upper boundary of the ascending channel from 06 Sep 2017 low + Fibonacci projection cluster).
• Japan 225 – Rise in progress as expected. Tightened key short-term support to 20930 for a further potential push up towards next resistances at 21130 and 21200 (see latest weekly technical outlook for details).
• Hong Kong 50 – No change, 28300 remains the key short-term support and an hourly close above 28575 is required to reinforce the bullish bias for a further potential up move towards the next resistance at 29100 (Fibonacci projection cluster) in the first step.
• Australia 200 – Showing signs of upside momentum after a range environment since Jun 2017. The daily RSI oscillator has started to breakout from its significant resistance at the 57% level. Current price action has inched above the 5800 medium-term range resistance and a daily close shall validate a bullish breakout for a potential up move towards the 5900 and 5925 resistances in the first step.
• Germany 30 –  Rise in progress as expected as it printed a fresh new all-time high of 13004. Short-term bullish impulsive upleg in place since 26 Sep 2017 minor swing low remains intact with tightened key short-term support now at 12960 (close to the minor ascending trendline from 10 Oct 2017 low + minor swing low of 12 Oct 2017 ).  Next intermediate resistance remains at 13080 (1.618 Fibonacci projection from 04 Oct 2017 minor swing low) follow by 13150 (Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform

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