Daily Key Short Term Technical Levels Mon 16 Oct 2017

FX – USD short-term weakness remains intact except against the EUR

• EUR/USD – Whipsawed around the 1.1825 key short-term support last Fri (13 Oct) due to a media report that stated ECB’s plan on a 50% reduction in its QE purchases at the start of 2018 with an extension on the duration of its QE programme in order to maintain ample liquidity in Eurozone.  Mix elements, prefer to turn neutral between  1.1780 (former minor swing high areas of  04/05 Oct 2017 + Fibonacci cluster) & 1.1870 for now.
• GBP/USD -  No change, short-term uptrend remains intact above tightened key short-term support at  1.3245 for a  further potential push up towards 1.3350/60 resistance(former minor swing low of 28 Sep 2017 + Fibonacci cluster).
• AUD/USD – Rise in progress and hit the first short-term resistance/target of 0.7860 as expected . No change, maintain bullish bias above tightened key short-term support now at 0.7825 for a further potential push up towards 0.7925 resistance next (former swing low area of 22 Sep 2017 + descending trendline from 08 Sep 2017 high + Fibonacci cluster).
• NZD/USD -  Short-term resistance/target almost met at 0.7200 as expected (printed a high of 0.7196 on last Fri, 13 Oct).  No signs of bullish exhaustion, short-term uptrend remains intact above tightened key short-term support now at 0.7130 (last Fri 13 Oct U.S. session low + close to the minor ascending trendline from 11 Oct 2017 low) with next resistance coming in at 0.7240/50 (minor swing high area of 29 Sep 2017 + 50% Fibonacci retracement of the decline from  21 Sep 2017 high to 10 Oct 2017 low).
• USD/JPY -  Drop in progress as expected. No change, maintain bearish bias below tightened key short-term resistance now at  112.30 (last Fri, 13 Oct U.S. session high + upper  boundary of minor descending channel from 06 Oct 2017 high) for a further potential push down towards the supports at 111.50 follow by 111.15/10 next (lower boundary of the aforementioned minor descending channel + minor swing low of  19 Sep 2017 + 38.2% Fibonacci retracement of the recent rally from 08 Sep 2017 low to 06 Oct 2017 high).

 Commodities – Further potential upside extension for Gold

• Gold – Rise in progress and met the first short-term resistance/target of 1304 as expected. No change, maintain bullish bias with a tightened key short-term support now at 1296 (former minor swing high area of 12/13 Oct 2017 + lower boundary of the minor ascending channel from 06 Oct 2017 low) for a further potential push up towards the next resistances at 1309 follow by 1315/1318 next (upper boundary of the aforementioned minor ascending channel + Fibonacci cluster).
• WTI Crude (Nov 2017) – Broke above 51.42 short-term neutrality range upper limit. Turn bullish above 51.35/22 (former minor swing high of 05/11 Oct 2017) for a further potential push up to retest the 52.75 resistance(swing high area of 28 Sep 2017).

Stock Indices (CFD) – Uptrend remains intact with bullish breakout seen in Australia

• US SP 500 – No change, 2551/48 key short-term support to maintain potential bullish impulsive leg sequence to target the next resistance at 2565/70 (Fibonacci projection cluster).
• Japan 225 –  Met  and surpassed the 21200 medium-term resistance/target.  No clear signs of bullish exhaustion, maintain bullish bias  above 21180 tightened key short-term support (minor swing low area of 13 Oct 2017 + close to the 23.6% Fibonacci retracement of the rally from 05 Oct 2017 low to today, 16 Oct current intraday Asian session  high) for a further potential push up towards the next short-term resistance at 21500/630 (Fibonacci projection cluster).
• Hong Kong 50 – Rise in progress as expected with hourly close above 21570 has reinforced the bullish bias. No change, short-term uptrend from 28 Sep 2017 minor swing low remains intact with tightened key short-term support now at  28500 (minor swing high of 12 Oct 2017 + minor ascending trendline from 11 Oct 2017 low) for a further potential push up towards the 29100 intermediate resistance (Fibonacci projection cluster) in the first step.
• Australia 200 – Daily close above 5800 has validated a bullish breakout from its former 4-month range configuration in place since Jun 2017. Turn bullish above 5810 key short-term support (lower boundary of the minor ascending channel from 05 Oct 2017 low + 23.6% Fibonacci retracement of the current rally from 04 Oct 2017 low) for a further potential push up towards the 5905 intermediate resistance (upper boundary of the aforementioned minor ascending channel + 1.618 Fibonacci projection from 04 Oct 2017 low) in the first step.
• Germany 30 –  Rise in progress as expected. No change, maintain bullish bias above tightened key short-term support now at 12980 (former minor swing high of 11/12 Oct 2017 + minor ascending trendline from 10 Oct 2017 low) for a further potential push up towards the next resistances at 13080 (1.618 Fibonacci projection from 04 Oct 2017 minor swing low) follow by 13150 next (Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform

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