Daily Key Short Term Technical Levels Tues 31 Oct 2017

FX – Mix bag with USD on support against EUR & AUD

• EUR/USD – Bounced up as expected towards the corrective rebound zone of 1.1635/1675 as per highlighted yesterday (printed a high of 1.1658 in yesterday, 30 Oct U.S. session). The hourly Stochastic oscillator has flashed a bearish divergence signal at its overbought region which reinforces the view that the minor corrective rebound  is likely to be over where another round of potential bearish impulsive wave sequence resumes. Maintain bearish bias below 1.1714 key short-term resistance ((close to 50% Fibonacci retracement of the recent decline from 26 Oct high to 27 Oct 2017 low + upper limit of former “Head & Shoulders” neckline support”) for a potential downleg towards the intermediate support of 1.1550 (lower boundary of the medium-term descending channel from 08 Sep 2017 high + Fibonacci projection cluster).
• GBP/USD – Broke above 1.3170 key short-term resistance which invalidated the bearish scenario. Another round of messy price configuration as the market waits for BoE’s monetary policy decision & Q3 inflation report on Thurs, 02 Nov. Prefer to turn neutral now between 1.3150 (minor ascending trendline from 27 Oct 2017 low) & 1.3230 (76.4% Fibonacci retracement of the recent drop from 26 Oct high to 27 Oct 2017 low + last week failure bullish breakout level).
• AUD/USD - Bounced up as expected towards the corrective rebound target of 0.7690 (printed a current intraday high of 0.7699 in today, 31 Oct Asian session). Maintain bearish bias below 0.7725 key short-term resistance (minor descending trendline from 19 Oct 2017 high + 38.2% Fibonacci retracement of the recent drop from 19 Oct high to 27 Oct 2017 low) for another potential downleg towards the next intermediate support at 0.7595/7585 (lower boundary of medium-term descending channel from 21 Sep 2017 high + Fibonacci projection cluster).
• NZD/USD – Mix elements, remain neural between 0.6810 & 0.6910.
• USD/JPY – Broke below the 113.34 key short-term support which invalidated the “last push up” scenario. Turn bearish below 113.45 (former minor ascending support that has linked up the swing lows of 24 Oct/26 Oct 2017) for a further potential push down towards the next intermediate support at 112.65 (lower boundary of a minor descending channel from 27 Oct 2017 high + 1.236 Fibonacci projection of the recent drop from 27 Oct 2017 high) and 112.40 (minor swing low area of 19 Oct 2017) within a long-term complex range configuration.

Commodities – Extended corrective decline invalidated for Gold

• Gold – Broke above the 1275 excess short-term resistance that has invalidated the extended corrective decline scenario. Mix elements, turn neutral now between 1265 & 1290 (61.8% Fibonacci retracement of the decline from 16 Oct 2017 high to 27 Oct 2017 low + descending trendline from 08 Sep 2017 high + minor swing high of 20 Oct 2017).
• WTI Crude (Dec 2017) – Challenged the 54.18 key short-term resistance in yesterday (30 Oct) U.S. session before it retreated. Both hourly Stochastic & RSI oscillators have  flashed bearish divergence signals at their respective overbought regions which suggests  that yesterday’s upside momentum of price action has started to ease. Maintain bearish bias below 54.18/ 54.46 (excess) key short-term resistance for a potential mean reversion corrective decline towards the 52.87/52.60 intermediate supports (38.2%/50% Fibonacci retracement of the recent rally from 24 Oct low to 30 Oct’s Asian session high + former minor swing high area of 16 Oct 2017).

Stock Indices (CFD) – S&P 500 & Japan 225 managed to hold above supports

• US SP 500  - Declined towards the 2570/65 key short-term support zone as per highlighted in yesterday’s report (printed a low of 2568 in yesterday, 30 Oct U.S. session). The hourly Stochastic oscillator has flashed a bullish divergence signal at its oversold region which suggests that the decline that  started yesterday has started to lose its downside momentum. Maintain bullish bias for a further potential push up towards the next intermediate resistances of 2590 follow by 2595 (1.618 Fibonacci projection of the up move from 26 Oct 2017 low, a minor degree bullish impulsive wave iii potential target).
• Japan 225 – No change, maintain bullish bias above 21800/755 key short-term support (congestion area of 26 Oct 2017 + minor ascending trendline from 19 Oct 2017 low) for a further potential up move to target the next resistances at 22315 follow by 22475 (lower limit of medium-term resistance, see weekly technical outlook).
• Hong Kong 50 – No change, maintain neutrality stance between prefer to turn neutral between 28000 & 28545 (“Head & Shoulders” invalidation level). Only an hourly close above 28545 shall validate a potential bullish exit towards 29100.
• ASX 200 – No change, maintain bullish bias above 5880 key short-term support for a further potential push up towards the intermediate resistance of 5950 (swing high areas of 12 Apr/01 May 2017) in the first step.
• Germany 30 – Still at risk of a minor corrective pull-back/consolidation below 13260 intermediate resistance towards 13130 short-term support with maximum limit set at the 13050 key medium-term pivotal support (refer to latest weekly technical outlook for details) before another potential bullish impulsive upleg materialises to target the next short-term resistance at 13355/370 (Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform

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