Gold, Maintaining Overall Positive Tone, To Complete 1240/1182 Descend

EUR/USD

The Euro maintains positive near-term tone, as bounce off 1.2600 zone approaches previous high at 1.2790, in attempt to create higher low. Break above strong 1.2700/20 barriers and subsequent acceleration, retraced over 76.4% of 1.2790/1.2603 downleg, seeing scope for final push through 1.2790/1.2800 breakpoints, previous high / Fibonacci 61.8% retracement of 1.2993/1.2499 descend, break of which to resume recovery rally off 1.2499, 03 Oct low. Yesterdays’s positive close, with break and close above daily 20SMA, along with positive near-term studies, supports the notion. Corrective actions should be ideally contained at 1.27 zone, previous resistance, reinforced by hourly 20 SMA, with further easing to hold above 1.2663 higher low and Fibonacci 61.8% retracement, to keep bulls in play.

Res: 1.2766; 1.2790; 1.2800; 1.2820
Sup: 1.2700; 1.2685; 1.2663; 1.2645




EUR/JPY

The pair corrects off fresh low at 135.53, posted yesterday, with rally being so far capped at strong resistance at 136.50 zone, previous range floor and near 38.2% retracement of 137.92/135.53 descend. Overall tone remains negative and favors further downside, after the pair broke below strong 135.80/71 base and came near the next strong support at 135.30, weekly cloud base. However, yesterday’s positive close would be a signal for further consolidative action, ahead of fresh attempt lower, with clearance of initial barrier at 136.50 and sustained break above 137, round-figure resistance / Fibonacci 61.8% retracement of 137.92/135.53 descend, required to neutralize bears.

Res: 136.53; 136.73; 137.00; 137.36
Sup: 136.00; 135.87; 135.53; 135.30




GBP/USD

Cable maintains overall negative tone, with near-term studies losing traction, after bounce off 1.6006 higher low of 10 Oct, was capped by descending daily 20SMA at 1.6125, ahead of pivotal 1.6130 lower platform. Consolidative action, signaled by yesterday’s Doji, is likely to precede fresh attack at 1.60 support zone, with key 1.5950 support, seen in extension. Only sustained break above 1.6130 barrier, would delay bears for further retracement of 1.6225/1.6006 downleg.

Res: 1.6110; 1.6125; 1.6142; 1.6173
Sup: 1.6049; 1.6030; 1.6006; 1.5950



USD/JPY

The pair remains under pressure and eventually broke below strong 107.00/106.80 support zone, psychological support / 16 Sep low. Yesterday’s close in red, as well as bearish near-term studies, signal further weakness and extension of pullback from 110.07, peak of 01 Oct. Extension below 107.00/106.80 support zone, eyes immediate support at 106.64/55, Fibonacci 38.2% retracement of 101.07/110.07 ascend / Fibonacci 100% expansion of the third wave which commenced from 108.73, 08 Oct lower top. Break here to open next significant level at 105.57, 50% retracement / daily 55SMA. Corrective actions should be capped under 108.00/15 barrier, to keep bears intact.

Res: 107.29; 107.56; 108.15; 108.31
Sup: 106.74; 106.64; 106.55; 106.00



AUD/USD

The pair’s bounce off 0.8650 low, regained 0.88 handle and 61.8% retracement of 0.8896/ 0.8650 downleg. This averts immediate risk of renewed attack at key 0.8641 low, in favor of prolonged consolidation, as the price action moves within 0.8641/0.8896 range. Hourly studies improved, which supports further recovery action, however, 4-hour studies are neutral, while daily tone is bearish. Further sideways trading is expected to precede fresh leg lower, with sustained break below 0.8641, to open 0.8543, 50% retracement of 0.6007/1.1079 ascend. Only sustained break above 0.89 barrier, would neutralize bears and mark double-bottom formation, for stronger correction of the downleg from 0.9400, 05 Sep lower top.

Res: 0.8812; 0.8832; 0.8896; 0.8931
Sup: 0.8734; 0.8700; 0.8650; 0.8641




AUD/NZD

Yesterday’s Doji candle shows indecision, after the price probed below 1.11 support, daily 20SMA, but failed to sustain break. Consolidation above 1.11 is under way, with positive hourly and negative 4-hour studies, lacking direction. Daily indicators still hold in the positive territory, which keeps alive hopes of fresh attempt towards pivotal 1.1280/93 peaks, as daily 55SMA holds for now. Extension above minimum 1.1170, 50% of 1.1276/1.1061 descend, is required to confirm scenario and sideline fresh attempts below 1.11 / 1.1061 levels, below which to confirm near-term double-top and open way for further retracement of 1.0914/1.1279 ascend.

Res: 1.1143; 1.1174; 1.1200; 1.1255
Sup: 1.1100; 1.1061; 1.1053; 1.1000




XAU/USD

Spot Gold maintains overall positive tone, as recovery rally from new low and critical support at 1182, is about to complete 1240/1182 descend. Near-term price action consolidates under fresh high at 1237, with consolidative action being so far contained at 1224, Fibonacci 23.6% of 1182/1237 ascend. Yesterday’s positive close and bullish near-term studies, support bullish scenario, with break above 1237/40, to open 1244, Fibonacci 38.2% retracement of 1344/1182 descend. Only pullback below 1216, 10 Oct higher low and Fibonacci 38.2% retracement of 1182/1237 ascend, would soften the tone and increase downside risk.

Res: 1237; 1240; 1244; 1255
Sup: 1224; 1216; 1210; 1204