Daily Key Short Term Technical Levels Thurs 07 Dec 2017

FX – USD is testing resistance with mix elements

• EUR/USD – Tested and managed to hold the 1.1790 key medium-term support (printed an intraday low of 1.1780 in yesterday, 06 Dec 2017, U.S. session before it inched back up above 1.1790). Interestingly, the recent decline from its 01 Dec 2017 minor swing high of 1.1940 has started to trace out an impending bullish “Descending Wedge” reversal chart pattern as seen in the hourly chart coupled with a bullish divergence signal seen in the hourly RSI oscillator. These observations suggest that the downside momentum of the past 3 days of decline has started to ease. No change, maintain neutrality stance between 1.1790 & 1.1820 (23.6% Fibonacci retracement of the recent decline from 01 Dec high to yesterday low + upper boundary of the aforementioned Descending Wedge”. An hourly close above 1.1820 is likely to reignite the bullish tone to retest the previous 1.1930 minor swing high area of 01 Dec 2017 before targeting next intermediate resistance at 1.2000 in the first step.
• GBP/USD – Another attempt to break below the 1.3375 key short-term support (printed a low of 1.3358 in yesterday, 07 Dec 2017 European session before it traded back up). Trapped in a minor sideways range configuration since 01 Dec 2017 within a short-term uptrend from 13 Nov 2017 low. Maintain bullish bias with 1.3505 as the upside trigger level (minor descending trendline from 01 Dec 2017 high) and an hourly close above 1.3505 is likely to increase the odds to kick star another potential upleg to retest 1.3660 (medium-term swing high of 20 Sep 2017) in the first step.
• AUD/USD – Challenging the 0.7550 key medium-term support with mix elements. The hourly Stochastic oscillator has started to trace out a bullish divergence signal at its oversold region. Prefer to maintain neutrality stance for now between 0.7550/40 & 0.7570 (former minor ascending trendline from 21 Nov 2017 low now turns pull-back resistance + today’s Asian session current intraday high). Only a break above (hourly close) 0.7570 is likely to reinstate the bulls for a potential push up to retest 0.7654/7670 in the first step.
• NZD/USD – Broke below the 0.6867 tightened key short-term support in today (07 Dec) Asian session which invalidated the direct rise scenario. Still hold above 0.6840/6820 key medium-term support (ascending trendline from 17 Nov 2017 low + swing low area of 01 Dec 2017). In the short-term, it is likely to have started to evolve in a “triangle range” configuration as seen from 28 Nov 2017 high, prefer to turn neutral now between 0.6840/6820 & 0.6910 (range upper limit).  
• USD/JPY – Still hovering below the 112.70/113.09 (excess) key medium-term resistance. No change,  maintain bearish bias with 111.60 remains as the downside trigger level where an  hourly close below 111.60 is required to increase the odds of the start of another potential downleg to target the next intermediate support at 110.60/50 (former medium-term range resistance of 16/31 Aug 2017 + Fibonacci projection cluster).

Commodities – Short-term weakness in WTI Crude

• Gold – Testing the 1265 range support from Oct 2017 low with a bullish divergence signal seen in the hourly Stochastic oscillator at its oversold region. Tolerate the excess to 1260 and maintain bullish bias with 1270 as the upside trigger level where an hourly close above 1270 is likely to increase the odds for a potential push back up towards the range resistance at 1290/98.
• WTI Crude (Jan 2018) – Broke below the 56.80 lower neutrality zone that has validated further short-term weakness. Turn bearish below 57.05 key short-term resistance (former minor swing low areas of 30 Nov/01 Dec 2017 + minor descending trendline from 01 Dec 2017 high) for a further potential push down towards 55.00/54.50 (former medium-term swing high area of Jan/Feb 2017 + ascending trendline from 31 Aug 2017 low).   

Stock Indices (CFD) – Pushed up but still below resistances

• US SP 500 – Pushed up but still below resistance with a bearish divergence signal seen in the hourly Stochastic oscillator at its overbought region. No change, maintain bearish bias below the 2642  tightened key short-term resistance or a further potential push down to retest the last Fri, 01 Dec low of 2604.   An hourly close below 2604 is likely to increase the odds for the start of a multi-week decline (refer to latest weekly technical outlook for details).
• Japan 225 – Pushed up to test the 22500 tightened key short-term resistance with its hourly Stochastic oscillator that has reached an extreme overbought level. No change, maintain bearish bias for a potential push down to retest this Wed, 06 Dec swing low area of 22060 before the 21830 medium-term downside trigger level (refer to latest weekly technical outlook for details).
• Hong Kong 50 – Still holding above the major support of 28000 (ascending trendline from 28 Dec 2016 low + 23.6% Fibonacci retracement of the on-going primary uptrend from 11 Feb 2016 low to 21 Nov 2017 high) with mix elements. Maintain neutrality stance between 28000 & 29300.
• Australia 200 – Did not have a clear bearish breakdown below the 5950 level and staged another bounce in today (07 Dec) Asian session. 6013/6033 remains the key medium-term resistance with an adjusted downside trigger level at 5950 after taking into account of yesterday’s price action. An hourly close below 5950 is required to increase the conviction for another potential leg of corrective decline towards the next intermediate support at 5900 in the first step.
• Germany 30 – Traded sideways below 13220 key medium-term resistance. No change, maintain bearish bias for a potential push down to retest 12800 (last Fri, 01 Dec 2017 swing low area + 15 Nov 2017 swing low area) in the first step.

*Levels are obtained from City Index Advantage TraderPro platform  

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