Daily Key Short Term Technical Levels Wed 01 Nov 2017

FX – Mix bag still prevails with USD on support against EUR, AUD & NZD

• EUR/USD – No change, 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 1.3230 upper limit of neutrality zone which validated a potential short-term push up towards 1.3360/3380 (former minor swing low areas of 27/29 Sep 2017 + 1.00 Fibonacci projection of the up move from 06 Oct low to 13 Oct 2017 high projected from 27 Oct 2017 low). Key short-term support now at 1.3220 (minor ascending trendline from 27 Oct 2017 low + former minor range resistance of 19/24 Oct 2017).
• AUD/USD -  No change, maintain bearish bias below 0.7725 key short-term resistance (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 0.7585 (lower boundary of medium-term descending channel from 21 Sep 2017 high + Fibonacci projection cluster).
• NZD/USD – Squeezed up and tested the upper limit of the neutrality zone at 0.6910 (printed a high of 0.6914 due to better than expected NZ job data where Q3 employment change recorded at increase of 2.2% versus consensus of 0.8%).  Hourly Stochastic oscillator has started to inch down from its overbought zone. Turn bearish below 0.6914 key  short-term resistance for a potential swing move down to test the lower limit of the neutrality zone at 0.6810 and an hourly close below 0.6810 is likely to trigger the start of another potential bearish impulsive downleg to target the next intermediate support of 0.6745/6720 (lower boundary of a minor descending channel from 17 Oct 2017 high + Fibonacci projection cluster).
• USD/JPY – Bear trap through the break above the 113.45 short-term resistance. Mix elements at the moment, prefer to turn neutral between 114.25 (swing high areas of 25/27 Oct 2017) & 113.18 (former swing high areas of 28 Sep/06 Oct 2017 that was broken down initially  & reintegrated back). An hourly close above 114.25 is likely to see a push up towards the significant long-term range resistance of 114.70/115.00 (major descending trendline from Jun 2015 high).

Commodities – WTI is undergoing an extension of its short-term upleg within a long-term complex range configuration  

• Gold – Sideways and it is likely to be evolving in a “triangle range” configuration since 06 Oct 2017 low. No change, maintain neutrality stance 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) – Broke above 54.46 (excess) short-term resistance that invalidated the minor corrective decline scenario. Right now, the up move from 20 Oct 2017 low is in an “extension” phase. Key short-term support now at 53.90 (yesterday, 31 Oct swing low area + former medium-term swing high areas of 30 Dec 2016/24 Feb 2017) for a further potential push up towards the next intermediate resistance at 55.90/56.00 (upper boundary of a medium-term ascending channel from 31 Aug 2017 low + Fibonacci projection cluster).

Stock Indices (CFD) – Potential bullish impulsive upleg resumes for Germany 30

• US SP 500  - Inched higher from 2570/65 key short-term support zone as expected. No change, 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 – Rise in progress as expected. Final potential push up towards medium-term resistance at 22475/500 (upper boundary of the medium-term ascending channel from 08 Sep 2017 low) with the daily RSI oscillator that is still showing a bearish divergence signal which indicates a slowdown in upside momentum of the current up move (see latest weekly technical outlook report). Key short-term support will be now tightened to 22100 (former minor swing high of 27 Oct 2017).
• 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 – Hit short-term resistance/target of 5950 as expected (printed a current intraday high of 5952 in today, 01 Nov Asian session). Maintain bullish bias with a tightened key short-term support now at 5920 (minor ascending trendline from 27 Oct 2017 low) for a further potential push up towards the 6000 medium-term resistance (see latest weekly technical outlook report).
• Germany 30 – Bullish break above 13260 intermediate resistance has invalidated the minor corrective decline/consolidation scenario. Right now, potential bullish impulsive upleg resumes above 13230 key short-term support (former minor swing high areas of 27/30 Oct 2017 + 23.6% Fibonacci retracement of the on-going advance from 26 Oct 2017 low) for a further potential push up towards the 13435/560 medium-term resistance (upper boundary of medium-term ascending channel from 29 Aug 2017 low + Fibonacci projection cluster) (see latest weekly technical outlook report).

*Levels are obtained from City Index Advantage TraderPro platform

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