Daily Key Short Term Technical Levels Wed 25 Oct 2017

FX – AUD/USD plunged towards major support

• EUR/USD – Whipsawed around the 1.1764/1777 key short-term resistance (printed a high of 1.1793 in yesterday (25 Oct) U.S. session. Mix elements, prefer to turn neutral between 1.1793 & 1.1725. On a break below 1.1725 is likely to trigger a minor drop towards the key medium-term support of 1.1680/70.
• GBP/USD – Dropped towards the minor range support of 1.3100 with the hourly Stochastic oscillator that has started to reverse up from its oversold region. Turn bullish for a potential push up towards the minor range resistance of 1.3225/3245 in place since 19 Oct 201 that also confluences with the minor descending trendline from 19 Oct 2017 high.
• AUD/USD – Dropped as expected and hit the support/downside target of 0.7770. It broke below 0.7770 in today (25 Oct) Asia session after AU Q3 core CPI came in below expectations (1.8% y/y versus 2% y/y and plunged straight towards its key long-term major support of 0.7730/0.7700 ( the former major range resistance of Apr 2016/Mar 2017 + medium-term ascending trendline from 09 May 2017 low). Elliot Wave/fractal analysis has suggested that the current drop from 20 Oct 2017 is overstretched where a potential mean reversion rebound can occur coupled with the hourly Stochastic oscillator at an extreme oversold level.  Turn bullish above 0.7700 long-term major support for a potential short-term rebound towards 0.7770/7788 (former minor swing low areas of 10/12 Oct 2017 + minor descending trendline from 20 Oct 2017 high + 38.2% Fibonacci retracement of the current decline from 20 Oct 2017 low to today’s current intraday low).
• NZD/USD – Dropped In progress as expected and it is now coming close to the support/downside target of 0.6860/6850 (18 Dec 2016/07 May 2017 swing low areas + Fibonacci projection cluster) as per highlighted yesterday. Mix elements, prefer to turn neutral between 0.6850 & 0.6960 (upper boundary of the minor descending channel from 19 Oct 2017 high).
• USD/JPY – Rebounded from the 113.20/113.06 key medium-term support as expected and managed to retest close to the 23 Oct 2017 swing high area of 114.05 (printed a high of 114.02 in yesterday, 24 Oct U.S. session) before it traded sideways. Maintain bullish bias above 113.25/20 support for a further potential push up towards the next resistances at 114.40 follow by 114.70 (major descending trendline from Jun 2015 + Fibonacci projection cluster).

Commodities – Drop in progress for Gold

• Gold – Managed to inch lower as expected below the 1285 key short-term resistance. No change, maintain bearish bias for a further potential decline to complete its corrective decline towards the 1260 medium-term support (06 Oct 2017 swing low + Fibonacci cluster)
• WTI Crude (Dec 2017) – Pushed up as expected and it is now coming close to the short-term range resistance/target of 52.75. Mix elements, prefer to turn neutral between 52.75 &  51.80 (close to the minor ascending trendline from 20 Oct 2017 low + yesterday, 24 Oct U.S. session low).

 Stock Indices (CFD) – Still holding above supports with outperformance from Japan 225

• US SP 500 – Traded sideways above the 2562 key short-term support while the Dow Jones Industrial Average Index (DJIA) rallied to a fresh all-time high of 23485 assisted by two of its components stocks; 3M & Caterpillar. Despite such discrepancy in the performance of the S&P 500 & DJIA, it does not imply a weak U.S. stock market as seven S&P 500 sectors have managed to post gains  versus only two sectors that recorded losses in yesterday (24 Oct) U.S. session. Maintain bullish bias above 2562 support  for another potential upleg to retest 2579 before targeting the next resistance at 2590 (Fibonacci projection cluster).
• Japan 225 –  Rise in progress and hit the lower limit of the short-term resistance/target zone of 21900/22000 in yesterday (24 Oct) U.S. session as it printed a high of 21931. Maintain  bullish bias above tightened key short-term support now at 21755 (minor ascending trendline from 19 Oct 2017 low + 23.6% Fiboancci retracement of the current  up move from 19 Oct 2017 to yesterday’s high) for a final potential push up towards the upper limit of the short-term resistance zone of 22000.
• Hong Kong 50 –  No clear break below the 28240/28000 key medium-term support (see latest weekly technical outlook). Maintain bullish bias above 28000 support for at least a short-term potential rebound towards 28545 follow by 28800 (range resistance in place since 16 Oct 2017).
• Australia 200 – Printed a new marginal higher low. Tightened key short-term support to 5880 (minor ascending trendline from 19 Oct 2017 low) for a  potential push up towards the intermediate resistance at 5950 (swing high areas of 12 Apr/01 May 2017) in the first step.
• Germany 30 – No change, 12980/954 remains the key short-term support for a  potential push up to retest its current all-time high level and the minor range resistance from 18 Oct 2017 high at 13070/13095. A break above 13095 is required to open up scope for further potential up move to target the next intermediate resistance at 13150.

*Levels are obtained from City Index Advantage TraderPro platform 

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