Daily Key Short Term Technical Levels Thurs 31 Aug 2017

FX -  USD medium-term downtrend in jeopardy due to movement in EUR & JPY

• EUR/USD – broke below 1.1905 short-term support, short-term uptrend invalidated. Now risk of further downside to test the next intermediate support at 1.1825 (former minor range resistance of 12 Aug/22 Aug/24 Aug 2017) with key short-term resistance now at 1.1930.
• GBP/USD – managed to hold above 1.2870 key short-term support (printed a  low of 1.2878 in yesterday’s U.S. session). Right now, it needs to have an hourly close above 1.2940 (yesterday’s minor swing high area) to reinstate the bullish tone for a potential push up towards the 1.3020 resistance (minor swing high areas of 09 Aug/12 Aug 2017 + 50% Fibonacci  retracement of the decline from 03 Aug 2017 high to 24 Aug 2017 low).
• AUD/USD – broke below 0.7940 short-term support, short-term uptrend invalidated. Now risk of further downside to test the next intermediate support at 0.7870 in first step (minor swing low areas of 18 Aug/24 Aug 2017) with key short-term resistance now at 0.7940 (pull-back resistance of former minor ascending trendline from 24 Aug 2017 low + 50% Fibonacci retracement of the current decline from 30 Aug 2017 high to today’s Asian session intraday low of 0.7886).
• NZD/UD – broke below 0.7220 short-term support, short-term uptrend invalidated. Now risk of further downside to test the next intermediate support at 0.7140 (lower boundary of minor descending channel from 30 Aug 2017 high + 0.618 Fibonacci projection from 29 Aug 2017 minor swing high) with key short-term resistance now at 0.7195 (former minor swing low area of 24 Aug 2017).
• USD/JPY – hourly close above 110.00 has validated a short-term uptrend within a medium-term rectangle range configuration in place since April/May 2017. Key short-term support at 110.10 (former minor range resistance from 19 Aug 2017) with short-term resistance at 111.00/111.10 (congestion area of 04 Aug/16 Aug 2017).

Commos

• Gold – still holding above 1300 key short-term support but short-term uptrend from 15 August 2017 low now at risk due to USD revival. 1313 needs to be broken to the upside to revive bullish tone for a potential push up towards the next resistance at 1333 (1.618 Fibonacci projection from 15 Aug 2017 low).
• WTI Crude (Oct 2017) - dropped in progress and printed a new minor marginal low of 45.59. Short-term downtrend remains intact below 46.72 tightened key short-term resistance with next short-term support at 45.00 (lower boundary of a minor descending channel in place since 10 Aug 2017 high + 1.00 Fibonacci  projection from 01 Aug 2017 high).

Stock Indices (CFD) – Mix bag with signs of recovery seen in U.S. stock market

• US SP 500 – pushed higher and even though it is still below the 2462 key medium-term resistance, the corrective decline phase is in jeopardy as the higher beta Nasdaq 100 had staged a bullish breakout above its “Expanding Wedge” resistance of 5900 with a higher volume versus Tues, 29 August volume (cash market). Thus, the SP 500 may start to undergo a potential bullish impulsive upleg phase at this juncture. Turn neutral first between 2462 and 2436.
• Japan 225 -  broke above 19560 upper neutrality zone, now showing further potential upside to test the 19800 key medium-term resistance with key short-term support at 19550/500 (former minor range top of 19 Aug/23 Aug/25 Aug 2017).
• Hong Kong 50 – rise in progress. Short-term uptrend remains intact above 27790 tightened key short-term support with short-term resistance remains at 28300 (1.618 Fibonacci  projection of the up move from 11 Aug low to 16 Aug high projected from 18 Aug low of 26977).
• Australia 200 – risk of a failure breakdown below 5680 to see another round of choppy movement towards 5800 range resistance. Turn neutral now between 5723 and 5660 (close to the minor ascending trendline from 29 Aug 2017 low).
• Germany 30 – still below 12045 key short-term resistance but short-term downtrend at risk due to on-going  EUR/USD weakness (indirect correlation with the DAX). Right now, 11980 (yesterday’s European session low) needs to be broken down to reinstate bearish tone for further potential push down to retest 11880 support (29 Aug 2017 minor swing low area).

*Levels are obtained from City Index Advantage TraderPro platform