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Daily Key Short Term Technical Levels Tues 21 Nov 2017

Article By: ,  Financial Analyst
November 21, 2017 11:00 AM

FX – AUD/USD hovering above key medium-term support with USD/JPY right below key short-term resistance

  • EUR/USD – Rebounded above the 1.1725/1705 key medium-term support to print a high of 1.1808 in yesterday (20 Nov) European session before it gave back all its gains into the U.S. session. 1.1725/1705 remains the key medium-term support to watch with upside trigger now at 1.1810. An hourly close above 1.1810 is required to increase the conviction for a potential start of another minor degree bullish wave sequence to target the next intermediate resistance of 1.1880 in the first step.
  • GBP/USD – Continued to inch higher as expected towards the upper limit of the minor range configuration in place since 06 Oct 2017. Maintain bullish bias above tightened key short-term support now at  1.3185 (yesterday, 20 Nov low + minor ascending trendline from 13 Nov 2017 low) to a further potential push up towards the 1.3300/3325 range upper limit/resistance.
  • AUD/USD – Bearish reaction right below the 0.7575  tightened key short-term resistance as expected (printed a high of 0.7574 in yesterday, 20 Nov European session). Right now, the on-going decline is now coming close to the 0.7520/0.7500 key medium-term support/target and in terms of Elliot Wave/fractal analysis, the pair now faces the risk of a medium-term corrective rebound/consolidation to retrace the on-going multi-month decline since 08 Sep 2017. Prefer to turn neutral now between 0.7575 & 0.7500.
  • NZD/USD – Pushed towards the 0.6836 tightened key short-term resistance (printed a high of 0.6838 in yesterday, 20 Nov European session) before it inched lower into the U.S. session. Maintain bearish bias below 0.6836/38 key short-term resistance for a potential residual push down towards the 0.6745/6720 support (lower boundary of a minor descending channel from 17 Oct 2017 high + Fibonacci projection cluster).
  • USD/JPY - Shaped the corrective rebound towards 112.40/65 (printed a high of  112.72 in yesterday, 20 Nov U.S. session). Maintain bearish bias below 112.65/72 (excess) key short-term resistance for another potential downleg to retest the recent low of 111.89 and below it opens up scope for a further decline towards  the next intermediate support at 111.35/20 (Fibonacci projection cluster + exit target of minor “Head & Shoulders” configuration from 25 Oct 2017 bearish breakout).

Commodities – Failure bullish breakout seen in Gold

  • Gold – Broke below the 1287/83 short-term support and reintegrated back into the minor range configuration in place since 06 Oct 2017. Prefer to revert back to neutral stance between 1265 (lower limit of the range) & 1290.
  • WTI Crude (Jan 2018) – Retreated from the adjusted 56.91 key short-term resistance to hit the first short-term support/target of 55.83 (printed a low of 55.75 in yesterday, 20 Nov U.S. session). Maintain bearish bias below 56.91 for another potential push down to retest the next intermediate support at 55.18 (minor swing low areas of 15/16 Nov 2017).

Stock Indices (CFD) – Mix bag with bullish breakout seen in Hang Seng (Hong Kong 50) while the rest are still trading below respective resistances

  • US SP 500 –  No change, still hovering below 2588/90 upper limit of the minor range configuration. 2565 needs to be broken down in the U.S session (an hourly close below it) to reinforce the start of another potential minor degree bearish impulsive wave sequence to target the next intermediate support at 2544.
  • Japan 225 – No change, maintain bearish bias below 22800 key short-term resistance for a potential drop to retest 15 Nov 2017 swing low of 21860 and below it opens up scope for a further decline towards the next intermediate support at 21650/600.
  • Hong Kong 50 – Bullish breakout above the 23900 medium-term upper neutrality zone that has validated another round of  potential bullish impulsive wave sequence (see latest weekly technical outlook). Turn bullish above 29270 key short-term support for a further potential push up towards the next intermediate resistance at 29850 (1.618 Fibonacci projection of the recent up move from 15 Nov 2017 low to 17 Nov 2017 high projected from yesterday, 20 Nov low + minor ascending channel resistance from 28 Sep 2017 high).
  • Australia 200 – Whipsawed around the 5952 key short-term resistance as per highlighted in previous report. Maintain bearish bias below 5990 key medium-term resistance (see latest weekly technical outlook) a potential push down to retest the 5919 recent low and a break below it increases the conviction for a further decline towards the next intermediate support of 5900 (38.2% Fibonacci retracement of the previous up move from 04 Oct 2017 low to 09 Nov 2017 high + minor swing low area of 26/27 Oct 2017).
  • Germany 30 – Pushed down below the 13027 tightened key short-term resistance to retest the 12860 minor swing low area of 15 Nov 2017 before it staged a rebound to erase its losses (printed a low of 12857). Now back at the minor range resistance of 13110 in place since last Fri, 17 Nov with 4 hour Stochastic oscillator that is inching down from its overbought region. Maintain bearish bias below 13110 adjusted key short-term resistance for another round of potential push down to retest 12860 and a break below it increases the conviction for another bearish downleg to target the next intermediate support at 12720/700 (Fibonacci cluster) in the first step.

*Levels are obtained from City Index Advantage TraderPro platform

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