Daily Key Short Term Technical Levels Tues 14 Nov 2017

FX –  Mix bag with AUD & NZD broke below respective key minor supports against USD

• EUR/USD –  Continued to inch upwards without shaping the expected pull-back towards 1.1615/16000 zone (printed a low of 1.1637 in yesterday, 13 Nov European session). Maintain bullish bias above tightened key short-term support now at 1.1630 (minor ascending trendline from 07 Nov 2017 low + minor swing low area of  10 Nov 2017) for a further potential push up towards 1.1690/1712 (medium-term upside trigger). A break above 1.1712 is likely to reinforce the start of a potential bullish impulsive wave sequence towards the next intermediate resistance at 1.1825/1840 (minor swing high area of 26 Oct 2017) in the first step.
• GBP/USD -  Dipped and coming close to the 1.3030 support/lower limit of the one month range configuration in place since 06 Oct 2017. Turn bullish above 1.3030 support for a potential swing move up to retest yesterday’s high of  1.3230 and even the aforementioned range upper limit/resistance at 1.3300/3325.
• AUD/USD – Broke below the 0.7625 lower limit of the neutrality range (Descending Triangle support) in yesterday (13 Nov) U.S. session. Turn bearish now below 0.7646 key short-term resistance (former minor swing low of 13 Nov 2017 Asian session  + upper boundary of the minor descending channel from 10 Nov 2017 high) for a further potential push down towards the intermediate support of 0.7580 (lower boundary of the aforementioned minor descending channel + Fibonacci projection cluster).
• NZD/USD – Broke below the 0.6880 downside trigger level as expected. Start of a potential bearish impulsive wave sequence has been reinforced. Maintain bearish bias below tightened key short-term resistance now at 0.6922 (former minor swing low of 10/13 Nov 2017 + minor descending trendline from 09 Nov 2017 high) for a further potential push down to retest the 27 Oct 2017 swing low area of 0.6820 before targeting the next intermediate support of  0.6745/6720 (lower boundary of a minor descending channel from 17 Oct 2017 high + Fibonacci projection cluster).

Commodities – WTI risk of a minor decline remains intact

• Gold –  No change, still evolving within a range configuration, thus maintain neutrality stance between 1290 & 1265.
• WTI Crude (Dec 2017) – No change, maintain  bearish bias below 57.53 key short-term resistance (minor descending trendline from 09 Nov 2017 high) for a potential minor push down to test the intermediate support at 55.60 (minor steep ascending trendline from 20 Oct 2017 low) in the first step. A break below 55.60 opens up scope for a further decline towards 54.00 next (50% Fibonacci retracement of the previous up move from 06 Oct to 09 Nov 2017 high + minor congestion zone of 31 Oct/02 Nov 2017).

Stock Indices (CFD) – Corrective decline in progress

• US SP 500 –  Traded sideways but risk of a medium-term (1-3weeks) corrective decline is still intact. Current price action has started to trace out a minor bearish “Head & Shoulders” topping configuration in place since 01 Nov 2017. Maintain bearish bias with a tightened key short-term resistance now at 2588/89 (close to last Fri, 10 Nov minor swing high + 76.4% Fibonacci retracement of the recent decline from 09 Nov 2017 high) for a potential push down to test 2565 intermediate support (medium-term downside trigger level + aforementioned minor “Head & Shoulders” neckline support) (see latest weekly technical outlook for more details).
• Japan 225 –  Dropped as expected and hit the short-term support/target of 22200/22100 (printed a low of 22115 in yesterday, 13 Nov U.S. session). Right now, undergoing a minor corrective rebound to retrace the recent decline from 09 Nov 2017 high. Maintain bearish bias  below key short-term resistance at 22750/800 (minor swing high area of 10 Nov 2017 + 50% Fibonacci retracement of the recent decline from 09 Nov 2017 high to yesterday’s U.S. session low) for another potential downleg to test the next intermediate support at 22000.
• Hong Kong 50 – Hit the 29300 medium-term resistance in today (14 Nov) Asian session (printed a current intraday high of 29315). Recall that we had turned cautious yesterday as the probability is low for the Index to print another “higher high” and current price action has indeed validated our cautious stance as it has formed an hourly bearish “Shooting Star” right below the 29300 medium-term resistance coupled with a bearish divergence signal seen in the hourly Stochastic oscillator at the overbought region. These observations suggest that the short-term upside momentum of price action has started to ease. Turn bearish below 29315 for a potential push down in the first step to test the intermediate support zone of 28970/28890.
• Australia 200 – Broke below the 6010 key short-term support that has invalidated the “last push up” scenario towards the 6065 medium-term resistance. Right now, it is testing the 5970 lower limit of the neutrality range as per highlighted in our latest weekly technical outlook report. Turn bearish below 6010 key short-term resistance and a break below 5670 is likely to reinforce a potential corrective decline to test the next intermediate support at 5905/5900 in the first step (minor swing low area of 31 Oct 2017 + 38.2% Fibonacci retracement of recent up move from 04 Oct 2017 to 09 Nov 2017 high).
• Germany 30 – Dropped as expected and almost hit the support/target of 12940/900 (printed a low of 12960 in yesterday, 13 Nov). No change, maintain bearish bias below 13165 tightened key short-term resistance (minor swing high area of 13 Nov 2017 + close to 38.2% Fibonacci retracement of the on-going decline from 07 Nov 2017 high) for a further potential pushed down to test the intermediate support of 12900 in the first step    

*Levels are obtained from City Index Advantage TraderPro platform

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.