Daily Key Short Term Technical Levels Mon 23 Oct 2017

FX – Mix bag with further potential JPY weakness

• EUR/USD – Broke below 1.1785 lower neutrality range. Short-term drop has been validated with key short-term resistance at 1.1790 (minor swing high area of 20 Oct 2017 + 38.2% Fibonacci retracement of the on-going decline from 19 Oct 2017 high) for a further potential push down towards the next support at 1.1715/1700 (09 Oct 2017 swing low area + Fibonacci cluster), above the key medium-term support zone of 1.1680/70.
• GBP/USD -  no change, neutral between 1.3100 & 1.3230/3245
• AUD/USD – Broke below 0.7825/7819 short-term support, direct rise scenario invalidated. However, the current drop is now coming  close a potential  inflection level of  0.7770 (congestion zone of 09/12 Oct 2017 + Fibonacci cluster) with an impending bullish divergence signal seen in the hourly Stochastic oscillator at its oversold region which suggests short-term downside momentum of price action has started to ease. Mix elements, prefer to turn neutral between 0.7770 &  0.7840.
• NZD/USD -  Broke below 0.6990 long-term key support (lower boundary of ascending channel from Aug 2015 low) and continued to drop lower. Current price is now resting at an intermediate support zone of 0.6930/6920 (former minor range resistance of 03 May/10 May 2017 + Fibonacci projection cluster) with bullish divergence signal seen in the hourly Stochastic oscillator. Countertrend rebound, 0.7000 (23.6% of current drop.
• USD/JPY -   Gapped up above 113.44/60 minor range resistance in today (23 Oct) Asian after PM Abe’s LDP party landslide victory in Japan national election. Short-term decline scenario has been invalidated. Turn bullish above 113.60/50 (today’s gap + minor ascending trendline from 19 Oct 2017 low) for a further potential push up towards  the next intermediate resistance at the 114.45/70 zone (major descending trendline from Jun 2015 + Fibonacci projection cluster).

 Commodities – Corrective decline extends in Gold

• Gold – Recovery scenario has been invalidated through the break of the 1282 short-term support. Corrective drop from 16Oct 2017 high has started to extend for a potential retest on the 1260 medium-term support (06 Oct 2017 swing low + Fibonacci cluster) with key short-term resistance now at 1285 (20 Oct 2017 minor swing high + upper boundary of minor ascending channel from 16 Oct 2017 high).
• WTI Crude (Dec 2017) – Challenged the 51.35/22 key short-term support before it managed to close back above 51.35 on last Fri (21 Oct) U.S. session. 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) – No signs of bullish exhaustion yet

• US SP 500 – Rise in progress as expected and printed a new all-time high of 2579 in today (23 Oct) Asian session. No change, maintain bullish bias above a tightened key short-term support now at 2570 (former minor swing high area of 20 Oct 2017 + minor ascending trendline from 19 Oct 2017 + 23.6% Fibonacci retracement of the on-going rally from 19 Oct 2017 low) for a further potential push up towards the next resistance at  2590 (Fibonacci projection cluster).
• Japan 225 – Rise in progress as expected and gapped up in today (23 Oct 2017) Asian session and hit the first short-term resistance/target of 21630/21690 in line with the movement of USD/JPY. Maintain bullish bias above a tightened key short-term support now at 21500 (former minor swing high of 19 Oct 2017 + minor ascending trendline from 19 Oct 2017 low) 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 28240 key medium-term pivotal support. 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 short-term 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 – Maintain bullish bias above 12954 key short-term support (last Fri, 20 Oct low) for a potential push up to retest 18 Oct 2017 swing high of 13095 follow by the next intermediate resistance at 13150.

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