Daily Key Short Term Technical Levels Tues 24 Oct 2017

FX – USD/JPY pull-backed to medium-term support zone

• EUR/USD – Drop as expected and printed a new marginal low of 1.1725 in yesterday (23 Oct) U.S. session. No change, maintain short-term bearish bias below tightened key short-term resistance now at 1.1764/1777 (pull-back resistance of former minor support from 17/18/23 Oct 2007 swing  low areas + 38.2% Fibonacci retracement of the recent drop from 19 Oct 2017 high to yesterday low) for a further potential push down towards at 1.1715/1700 (09 Oct 2017 swing low area + Fibonacci cluster) follow by  the key medium-term support zone of 1.1680/70.
• GBP/USD – No change, maintain neutrality stance between 1.3100 & 1.3245.
• AUD/USD – Pushed up toward the key short-term resistance at 0.7840 (former minor swing low area of 20 Oct 2017 + 50% Fibonacci retracement of the current drop from 19 Oct 2017 high to yesterday’s low). Turn bearish for a potential push down below 0.7840 towards the 0.7770 intermediate support (congestion zone of 09/12 Oct 2017 + Fibonacci cluster).
• NZD/USD – Pushed up as expected towards the 0.7000 (potential countertrend/short-term rebound target/resistance as per highlighted yesterday) before it staged a bearish reaction in today (24 Oct) Asian session. The bearish impulsive wave sequence of the short-term downtrend  in place since 17 Oct 2017 high is now likely to have resume below the 0.7005 key short-term resistance (today, 24 Oct current intraday high +  23.6%  Fibonacci retracement of current drop from 17 Oct 2017 high to yesterday’s low). The next immediate support rests at 0.6860/6850 (18 Dec 2016/07 May 2017 swing low areas + Fibonacci projection cluster).
• USD/JPY – Broke below the 113.60/50 minor gap support & declined towards the 113.20/113.06 key medium-term support (pull-back support of former range resistance from 10 Mar 2017 high + pull-back support of former range resistance from 28 Sep 2017 high + minor ascending trendline from 16 Oct 2017 low).  In addition, the short-term  hourly Stochastic oscillator has flashed a bullish divergence signal at its oversold region which indicates a slow-down in downside momentum of the current drop from yesterday high. Thus, maintain bullish bias above 113.20/113.06 key medium-term support for a potential recovery  to retest 114.05 (yesterday, 23 Oct swing high) and above it opens up scope for a further potential up move to target the next resistance at  114.45/70 zone (major descending trendline from Jun 2015 + Fibonacci projection cluster).

Commodities – Gold is hovering below resistance

• Gold – Pushed up but remained below the 1285 key short-term resistance (20 Oct 2017 minor swing high + upper boundary of minor ascending channel from 16 Oct 2017 high). No change, still has risk to undergo an extension of its corrective decline to retest the 1260 medium-term support (06 Oct 2017 swing low + Fibonacci cluster) as long as 1285 resistance is not surpassed.
• WTI Crude (Dec 2017) – No change, maintain bullish bias above 51.70 tightened key short-term support  (20 Oct 2017 minor swing high area) for a further potential push up to retest the 52.75 resistance(swing high area of 28 Sep 2017).

Stock Indices (CFD) – Still holding above supports

• US SP 500 – Sold off in yesterday (23 Oct) U.S. session and declined by 0.6% to print a low of 2563 which is within our predefined intermediate support zone of 2570/62 as per highlighted in our latest weekly technical outlook report. Using 2562 as the key short-term support (former minor swing high area of 18 Oct 2017 + 50% Fibonacci retracement of the recent rally from 19 Oct 2017 low to yesterday’s high of 2579) to maintain bullish bias for another potential upleg to retest 2579 before the next resistance at 2590 (Fibonacci projection cluster).
• Japan 225 – Pull-backed but still managed to hold above the predefined key short-term support of 21500 as per highlighted yesterday (printed a low of 21618 in yesterday, 23 Oct U.S. session). No change, maintain bullish bias above 21500 support for a  further potential push up towards 21900/22000 next (Fibonacci projection cluster + upper boundary of the medium-term ascending channel from 08 Sep 2017 low).
• Hong Kong 50 – Still holding above the key medium-term pivotal support upper limit at 28240. No change, maintain bullish bias for a potential recovery to retest 28800 (16 Oct 2017 swing high) follow by the next resistance at 29100 (Fibonacci projection cluster).
• Australia 200 – No change, 5858 remains the key support for a potential push up towards the intermediate resistance at 5950 (swing high areas of 12 Apr/01 May 2017) in the first step.
• Germany 30 – Continued to trade sideways above the 12980/954 key short-term support as the Catalonia crisis rages on. A potential push up to retest its current all-time high level and the minor range resistance from 18 Oct 2017 high at 13070/13095 is still possible as long as 12980/954 support holds. A break above 13095 is likely to open up scope for further potential up move to target the next intermediate resistance at 13150.

*Levels are obtained from City Index Advantage TraderPro platform

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