Gold Remains Under Pressure; USD/JPY Continues To Trend Higher

EUR/USD

The euro remains in sideways mode, stabilizing above 1.29 handle, in a narrow range. Yesterday’s Doji confirms near-term indecision, with three-day range ceiling establishing at 1.2962 and floor marked by 1.2882, low of 10Sep. Lack of direction and flat hourly studies, suggest further consolidation, with 4-hour studies still holding negative tone. This keeps the downside vulnerable, as overall tone remains bearish and so far ignores oversold daily conditions. Violation of initial 1.2962/87 barriers and psychological 1.30 level, would signal stronger upside attempts towards 1.3070, Fibonacci 38.2% of 1.3410/1.2858 and 1.31 hurdle, while clearance of 1.3158 lower top of 03 Sep is required to confirm near-term base and correction underway, which will put aside attempts towards near-term targets at 1.2786, Fibonacci 61.8% retracement of 2012/2014 1.2042/1.3992 ascend and a higher base at 1.2750 zone, Mar/July 2013 lows.

Res: 1.2962; 1.2987; 1.3000; 1.3044
Sup: 1.2910; 1.2882; 1.2858; 1.2800



EUR/JPY

The pair surged through key 138.27 barrier and posted fresh high at 138.72 so far, with bulls being fully in play after formation of Three White Soldiers reversal pattern signaled further upside. The notion is supported also by formation of double-bottom pattern on daily chart, which sees scope for fresh extension towards 139, psychological barrier / 50% retracement of 142.35/135.71 and 139.26, lower top of 03 July. Corrective pullbacks are expected to interrupt rallies, with daily close above 138 handle, required to keep bulls intact.

Res: 138.74; 139.00; 139.26; 139.51
Sup: 138.27; 138.00; 137.60; 137.26



GBP/USD

Cable consolidates near term gains which cracked initial 1.6230 barrier, on extension to 1.6275 so far, Fibonacci 38.2% retracement of 1.6642/1.6050 descend. Near-term price action is holding within 1.6212/1.6275 range, with positively aligned near-term studies seeing scope for further recovery action. To confirm correction scenario and neutralize immediate bears, filling Monday’s gap on regain of lower top at 1.6338, is required. The notion is supported by formation of Morning Doji Star – like pattern, on the daily chart, along with overextended daily studies. However, overall negative sentiment sees extension of larger downtrend, once corrective action is completed.

Res: 1.6275; 1.6300; 1.6338; 1.6347
Sup: 1.6213; 1.6155; 1.6123; 1.6050



USD/JPY

The pair continues to trend higher, with fresh bulls establishing above psychological 107 barrier, as target at 107.20, Fibonacci 138.2% projection of the upleg from 100.81, was taken out. The pair is looking for extension towards 108/110 zone in the near-term, with corrective pullbacks expected to interrupt rallies. Initial support lies 107 level, ahead of 106.60 and 106.00 higher bases, where corrective dips should be contained.

Res: 107.50; 108.00; 108.30; 109.00
Sup: 107.00; 106.50; 106.00; 105.70



AUD/USD

The pair maintains negative tone, with fresh extension of the downleg from 0.9216 lower top, losing 0.910 handle and retracing over 50% of larger 0.8658/0.9503 ascend. Bears so far tested target at 0.9050, weekly cloud base, with further downside being favored. Next targets lay at 0.9000, psychological support and 0.8980, Fibonacci 61.8% retracement. Corrective actions are expected on oversold near-term studies, with 0.9216 lower top, expected to cap extended rallies.

Res: 0.9110; 0.9187; 0.9216; 0.9268
Sup: 0.9050; 0.9000; 0.8980; 0.8950



AUD/NZD

The pair remains under pressure and broke below 1.1089, low of 10 Sep, leaving lower top at 1.1223 and signaling further descend. Loss of 1.11 handle approaches next supports at 1.1062, Fibonacci 61.8% of 0.9228/1.1293; 1.1055, 21/22 Aug higher base and 1.1045/49, previous tops of 29 July / 06 Aug. Negative near-term studies favor further downside, as corrective action on overbought daily studies, however, the above supports mark an ideal reversal zone, with extended dips expected to hold above 1.10 zone, to keep larger picture bullish structure intact. Otherwise, loss of 1.10 handle would signal extension of the third wave from 1.1223, towards 1.0937, its 138.2% Fibonacci expansion and 1.0922 higher base.

Res: 1.1135; 1.1200; 1.1235; 1.1272
Sup: 1.1050; 1.1016; 1.1000; 1.0950



XAU/USD

Spot Gold remains under pressure and has eventually fully retraced 1240/1344 bull-phase , with fresh weakness, signaling further extension of larger downtrend off 1344, 10 July peak. Initial target lies at 1231, double-Fibonacci support, 138.2% expansion of the third wave from 1322 and 76.4% retracement of 1182/1392 ascend. Further bears would look for test of 1215, 06 Jan low and Fibonacci 161.8% expansion. No signals of reversal so far, however, daily studies entering oversold territory, require caution.

Res: 1242; 1250; 1257; 1261
Sup: 1231; 1215; 1200; 1182