Daily Key Short Term Technical Levels Mon 06 Nov 2017

FX – Short-term uptrend remains intact for USD except against NZD

• EUR/USD – Drop in progress as expected below the predefined 1.1714 key short-term resistance as per highlighted in the previous reported. Printed a high of 1.1690 last Fri (03 Nov) after U.S. NFP data release before it retreated to a U.S. session low of 1.1599. No change, short-term downtrend remains intact with tightened key short-term resistance now at 1.1645 (former minor ascending trendline from 27 Oct 2017 low + 50% Fibonacci retracement of last Fri post NFP drop from 1.1690 high). Next intermediate support remains at 1.1550 (lower boundary of the medium-term descending channel from 08 Sep 2017 high + Fibonacci projection cluster).
• GBP/USD -  Shaped the expected minor corrective rebound as expected to print a high of 1.3133 (just below the predefined 1.3140/3170 key short-term resistance) before it retreated post NFP. Recalled that we have mentioned in our previous report, last Fri (03 Nov) expected corrective rebound is a retracement to account for the steep decline that occurred post BoE (Thurs, 02 Nov). No change, maintain bearish bias below 1.3140/3170 key short-term resistance for the start of a new potential downleg towards the next intermediate support at 1.2850/2820 (medium-term swing low area of 24 Aug 2017 + ascending trendline from 16 Jan 2017 + former long-term descending resistance from Jul 2014 high now turns pull-back support + Fibonacci cluster).
• AUD/USD – Drop in progress as expected. Short-term downtrend remains intact below tightened key short-term resistance now at 0.7680 (former minor ascending trendline from 27 Oct 2017 low + 50% Fibonacci retracement of last Fri, 03 Nov drop from 0.7730 minor swing high) with next intermediate support remains at 0.7585 (lower boundary of medium-term descending channel from 21 Sep 2017 high + Fibonacci projection cluster).
• NZD/USD – Risk of a further minor corrective rebound still prevails to retrace the previous minor degree impulsive downleg from 17 Oct  high to  27 Oct 2017 low. In addition, the short-term hourly Stochastic oscillator has continued to inch upwards and still has room for further potential upside before it reaches an extreme overbought level. These observations suggest short-term upside momentum of price action remains intact. Key short-term support remains at 0.6885 to maintain corrective rebound scenario with intermediate resistance at 0.6968/6990 (former medium-term descending channel support from 27 Jul 2017 high now turns pull-back support + minor swing high areas of 23/24 Oct 2017 + Fibonacci cluster).
• USD/JPY – Last Fri (03 Nov) post NFP hourly close above 114.25 (upper neutrality range as per highlighted in previous report) has validated a potential short-term push up towards the next resistance zone of 114.70/115.00 (key long-term upper boundary of a complex range configuration + major descending trendline from Jun 2015 high). Key short-term support now at 114.25 (former range resistance from 27 Oct 2017 minor swing high).

Commodities – Gold is looking vulnerable for further potential downside

• Gold –  Looking vulnerable to break below the 1265 lower limit of the neutrality range as per highlighted in previous report as the hourly RSI oscillator has broken below a corresponding support at the 42% level. Turn bearish below 1274 key short-term resistance (former minor swing low areas of 02/03 Nov 2017) for another minor  degree impulsive downleg to test the 1251 intermediate support (1.00 Fibonacci projection of the down move from 02 Nov 2017 high + minor swing low area of 08 Aug 2017).
• WTI Crude (Dec 2017) – Rallied as expected and hit the short-term resistance/target of 55.90/56.00 (printed a current intraday high of 55.99 in today, 06 Nov Asian session). Maintain bullish bias above 54.93 (former minor swing high area of 03 Nov 2017 + minor ascending trendline from 02 Nov 2017 low) for a further potential push up towards the next intermediate resistance at 56.60 (Fibonacci projection cluster + upper boundary of minor ascending channel from 26 Oct 2017 low).

Stock Indices (CFD) – Remains  above respective supports across the board

• US SP 500 – Rise in progress as expected and it continued to print new marginal higher lows on last Fri (03 Nov) post NFP. No change, maintain bullish bias above tightened key short-term support now at 2573 (minor ascending channel support from 26 Oct 2017 low + minor swing low area of 02 Nov 2017 + 61.8% Fibonacci retracement of the on-going advance from 02 Nov 2017 minor swing low) a further potential push up towards the next intermediate resistances of 2595 follow by 2600 in the first step (Fibonacci projection cluster)
• Japan 225 – No change, maintain bullish bias as short-term uptrend of the Index from 19 Oct 2017 is likely to be in an extension phase. Key short-term support remains at 22367/300 for a further potential push up towards the intermediate resistance at 22730/760.
• Hong Kong 50 – No change, maintain bullish bias above 28340 key short-term support for potential push up towards 29100/130 (1.1618 Fibonacci projection of the up  move from 25 Oct low to 30 Oct 2017 high projected from the minor swing low of 31 Oct 2017 low) as this laggard is expected to play a catch up after it traded sideways for the past  two weeks.
• Australia 200 – No change, maintain bullish bias above 5920 key short-term support for a further potential push up towards the 6000 medium-term resistance (see weekly technical outlook report).
• Germany 30 – No change, maintain bullish bias above 13400/360 key short-term support for a further potential push up towards 13560 (upper boundary of the medium-term ascending channel from 29 Aug 2017 low + Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform