Daily Key Short Term Technical Levels Tues 10 Oct 2017

FX – Potential bearish reversal in USD

• EUR/USD –  Recall that in our previous report, we had highlighted that technical elements had flashed signs of bullish reversal for the pair. We were cautious for a further extension of the short-term downtrend from  8 Sep 2017 high and used a tightened short-term resistance at 1.1755 for a potential last push down towards the lower boundary of the minor “Descending Wedge” from  29 Sep 2017. In today (10 Oct) Asian session, the pair had staged a bullish breakout from the upper boundary of the aforementioned “Descending Wedge”, thus invalidated the last push down scenario. Right now, the pair may kick-start  a potential fresh bullish impulsive upleg with key short-term support at 1.1730 (pull-back support of the former “Descending Wedge” resistance + minor swing low area of 09 Oct 2017) with next short-term resistances coming in at 1.1830 follow by 1.1875 (former minor swing low areas of 14/21 Sep + pull-back resistance of former ascending channel from 09 Apr 2017 low + 50% Fibonacci retracement of the recent decline from 08 Sep 2017 high to 06 Oct 2017 low).
• GBP/USD – Remains neutral with a tightened range of 1.3120 & 1.3180 ((former minor swing low area of 12/14 Sep 2017 + descending trendline from 21 Sep 2017 high + 23.6% Fibonacci retracement of the current decline from 21 Sep 2017  high to 06 Oct low). In yesterday (09 Oct), European session, the pair indeed tested 1.3180 before it backed off and traded sideways throughout the U.S. session. An hourly above 1.3180 shall validate a potential short-term bullish impulsive upleg towards the short-term resistance of 1.3280 (minor swing high areas of 03/4 Oct 2017 + close to 38.2% Fibonacci retracement of the decline from 21 Sep 2017 high to 06 Oct 2017 low).
• AUD/USD -  No change, 0.7730 remains the support for a potential short-term rebound towards the 0.7820/30 intermediate resistance.
• NZD/USD – Pushed down yesterday but managed to hold above upper limit of the 0.7050/7040 key support. Hourly RSI oscillator has turned positive as it inched above 50% which suggests that short-term upside momentum of price action has resurfaced. Turn bullish above 0.7050 support for a potential short-term rebound towards the 0.7140 resistance (7140 (upper boundary of short-term descending channel from 21 Sep 2017 high + former minor swing low area of 31 Aug 2017).
• USD/JPY – Yesterday’s bullish bias for a potential last push up towards the upper boundary of the bearish minor “Ascending Wedge” at 113.50/60 has been negated due to movement seen in the other majors.  Prefer to turn neutral now between 112.30 & 112.90.

Commodities – Short-term uptrend remains intact for Gold

• Gold – No change, rise in progress as expected. The key short-term support remains at 1274 for a potential push up towards the next short-term resistances at 1297 (38.2% Fibonacci retracement of the decline from 08 Sep 2017 high to 06 Oct 2017 low) follow by 1304/1309 next (upper boundary of a short-term ascending channel from 06 Oct 2017 low + Fibonacci cluster).
• WTI Crude (Nov 2017) – No change, key short-term resistance remains at 50.00 (former minor swing low area of 05 Oct 2017  + 23.6% Fibonacci retracement of the on-going decline from 28 Sep 2017 high) for a further potential push down towards the next supports at 49.00 follow by 48.70/48.10 (minor swing low areas of 01/11 Sep 2017 + Fibonacci cluster).

Stock Indices (CFD) – Uptrend remains intact in U.S, Hong Kong & Germany

• US SP 500 – Inched lower in yesterday (09 Oct) U.S. session and printed a low of 2541 (right above the predefined 2540 support) and formed an hourly bullish “Hammer” candlestick pattern. No change,  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). Key short-term support remains at 2540 as Q3 earnings for key U.S. banks out this week (12 Oct – Citigroup, JPMorgan & 13 Oct – Wells Fargo & Bank of America).
• Japan 225 – Rise in progress as expected and hit the first short-term resistance/target of 20790 (printed a current intraday high of 20796 in today’s Asian session). As it is approaching the next short-term resistance of 20875 with mix technical elements, prefer to turn neutral now between 20875 & 20600.
• Hong Kong 50 – Tested and rebounded from 28300 key short-term support  No change, an hourly close above 28570 is likely 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 – Sideways churning, remain neutral between 5800 & 5717. An hourly close below 5717 shall validate a potential minor push down towards 5670/60 key medium-term range support.
• Germany 30 – No change, short-term bullish impulsive upleg in place since 26 Sep 2017 minor swing low remains intact with key support remains at  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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