The EUR/USD remained well bid above the 1.10 handle in Asia. Selling pressures on the pair ease as the US dollar pares gains. The trend remains negative below 1.1086 (major 38.2% retracement on Sep 30 to Oct 13 fall), for a potential extension of losses to 1.0951 (Jul 24 low) and 1.0910 (Jun 23 low). Above 1.1096, the short-term bullish reversal could encourage a further rise to 1.1148 (Fibonnacci 50%) and 1.1187 (major 61.8% retrace).
The positive momentum in the USD/JPY could encourage a last push toward 105.00, max 105.50, before the appetite in USD is further compromised. The short-term bias remains positive above the 102.89 level (major 38.2% retracement on Sep 27 to Oct 13). Intermediate support is eyed at 103.55 (minor 23.6% retrace).
The appetite in the GBP/USD remains limited given the heavy negative bias due to political risks. The short-term resistance is eyed at1.2295 (major 38.2% retracement on Sep 29 to Oct 7 crash), if surpassed, could bring along a further recovery to 1.2440 (Fibonacci 50% level). Stops are eyed below 1.20.
The AUD/USD rebounded past 0.7582 resistance (major 50% level on Sep 15 to Sep 29 rise), following the failure to clear the 0.7515 support (minor 76.4% retrace on Sep 15th to Sep 29th rise). The fading US dollar appetite suggests a potential extension of the recovery to 0.7612 (major 38.2% retrace) before 0.7710/0.7730 mid-term resistance. Short-term supports are eyed at 0.7551 (major 61.8% retrace) before 0.7455 (Sep 15th low), mid-term support.’
Gold is better bid as the USD appetite eases, nevertheless the hawkish Fed expectations are expected to cap the upside pre-200-day moving average ($1275). Support is eyed at $1250 (major 38.2% retracement on Dec 16 to Jun 5 rise). Only a successful recovery attempt above $1275, could encourage a rise to $1297 (minor 23.6% retrace)
The WTI found solid bids below $50 level. Combined to a softer US dollar, the bias remains positive for a resurge toward the $53/$55 mid-term resistance. The next critical support is eyed at $50.15 (minor 23.6% retrace on Sep 20 to Oct 10 rise), and $48.92 (major 38.2% retracement on Sep 20 to Oct 10 rise), which should distinguish between a recovery and a short-term bearish reversal.