Daily Key Short Term Technical Levels Thurs 09 Nov 2017

FX – Signs of USD weakness have emerged

• EUR/USD – Traded sideways below the 1.1616/30 key short-term resistance. Yesterday’s price action (daily “Doji-like” candlestick pattern) has reduced the conviction for a last push down scenario to target the 1.1515/1510 support. Prefer to turn neutral now between 1.1620 (minor swing high area of 06 Nov/07 Nov 2017) & 1.1579 (yesterday, 08 Nov low). A break above (hourly close) 1.1620 is likely to trigger a potential recovery towards the next intermediate 1.1690/1705 (former medium-term range support from 17 Aug/06 Oct 2017 & minor swing high of 03 Nov 2017) in the first step.
• GBP/USD – Still evolving within a choppy range environment. Prefer to maintain neutrality stance between 1.3030  & 1.3325 (minor range configuration in place since 06 Oct 2017 low).
• AUD/USD – Failed to break below 27 Oct 2017 low of 0.7625 and rebounded back up towards the 0.7700 key short-term resistance. Yesterday’s price action has reduced  the conviction for a push down to target the 0.7585 intermediate support. Prefer to turn neutral now between 0.7625 & 0.7730 (02 Nov 2017 minor swing high + upper boundary of a medium-term descending channel from 21 Sep 2017 high).
• NZD/USD – Pushed up after RBNZ but still below the 0.6690/0.7015 key short-term resistance (printed a high of 0.6973). Given the movement seen in the rest of the majors, initial bearish view has been dampened. Prefer to turn neutral now between 0.6690/0.7015 & 0.6880 (minor swing low of 06 Nov 2017 + minor ascending trendline from 27 Oct 2017 low).
• USD/JPY – Dropped and hit the first short-term support/target of 113.55 as expected (printed a low of 113.39 in yesterday, 08 Nov European session before it rebounded). No change, maintain bearish  bias below 114.30 key short-term resistance for another potential downleg to retest 113.39 before targeting the next intermediate support at 113.00 (swing low area of 31 Oct 2017 that was a previous resistance from 27 Sep/06 Oct 2017) within a medium-term range configuration).

Commodities – WTI remains below “Expanding Wedge” resistance

• Gold –  No change, maintain neutrality stance between 1290 & 1265.
• WTI Crude (Dec 2017) – Churning/consolidation below 58.30 (upper limit of an “Expanding Wedge” configuration in place since Jun 2016).  No change, maintain neutrality stance between 58.30 & 55.66.

 Stock Indices (CFD) – Rise in progress except for Japan 225 with risk of a minor pull-back

• US SP 500 – Recovered from the 2586/80 (excess) key short-term support as expected. No change, maintain bullish bias above 2586/80 (excess) key short-term support for a another potential upleg to target the intermediate resistances of 2600 follow by 2610 2610 (upper boundary of the minor ascending channel from 26 Oct 2017 + Fibonacci projection cluster). The key short-term support will be tightened to 2589  if there is an hourly close above the current all-time high of 2597 in today’s U.S. session.
• Japan 225 – Continued its up move relentlessly as expected and surpassed the upper limit of medium-term resistance/target of 23260 as per highlighted in the weekly technical outlook report (printed a current intraday high of 23420 in today, 09 Nov Asian session). No signs of a medium-term bullish exhaustion yet except for  the risk of a minor pull-back in short-term at this juncture due to today’s steep ascend, prefer to turn neutral first between 23500 (Fibonacci projection cluster) & 22940 (former minor swing high area of 07 /08 Nov 2017).
• Hong Kong 50 – Rise in progress and hit the short-term resistance/target of 29100/130 as expected. Tightened key short-term support to 28970 (today’s opening gap) for a further potential push up towards the medium-term resistance of 29300 next (see latest weekly technical outlook).
• Australia 200 – Rise in progress and hit the short-term resistance/target of 6050 as expected. No change, maintain bullish bias above tightened key short-term support now at 6010 (lower boundary of the minor ascending channel in place since 27 Oct 2017 low) for a further potential push up target the medium-term resistance of 6065 follow by 6130 next (upper boundary of the medium-term ascending channel from 04 Oct 2017 low + 1.00 Fibonacci projection of the up move from 04 Oct low to 20 Oct 2017 low projected from 27 Oct 2017 low).
• Germany 30 -  No change, maintain bullish bias above 13200 key medium-term support with 13440 remains as the upside trigger to reinforce the start of another potential bullish impulsive upleg to retest 13560 before targeting the next intermediate resistance of 13625 (upper boundary of medium-term ascending channel from 29 Aug 2017 low + Fibonacci projection cluster).

*Levels are obtained from City Index Advantage TraderPro platform