Daily Key Short Term Technical Levels Tues 12 Sep 2017

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By :  ,  Financial Analyst

FX – Mix with deeper potential retracement in AUD/USD & corrective rebound in USD/JPY

  • EUR/USD – no change, 1930 key short-term support to maintain short-term uptrend movement from 31 August 2017. In addition, the hourly RSI oscillator has started to flash a bullish divergence signal at its oversold region which indicates a slow-down in yesterday’s downside momentum of price action. Short-term resistances now at 1.2030 follow by 1.2092 next.
  • GBP/USD – Traded sideways above  key short-term support at 1.3150 (minor ascending trendline from 05 Sep 2017 low + 23.6% Fibonacci retracement of the recent rally from 05 Sep 2017 low to 08 Sep 2017 high). Short-term uptrend movement from 05 September 2017 low remains intact with next short-term resistance coming in at 1.3230/3300 (03 Aug 2017 swing high + Fibonacci projection cluster).
  • AUD/USD -  Broke below 0.8040/20 short-term support that invalidated the direct rise scenario within its short-term uptrend that is still in place since 31 August 2017 low. Now risk of a deeper pull-back towards 0.7960 (former swing high area of 17 Aug 2017 + medium-term ascending trendline in place since 02 Jun 2017 low). Prefer to turn neutral first between 0.7960 and 0.8060 (former minor swing high of 11 Sep 2017 + 50% Fibonacci retracement of current pull-back from 08 Sep 2017 high + pull-back resistance of former minor ascending trendline support from 31 Aug 2017).
  • NZD/USD -  No change, still above the key medium-term support of 0.7210/0.7200 (pull-back support of the former descending channel from 27 Jul 2017 high + ascending trendline from 31 Aug 2017 low + 61.8% Fibonacci retracement of the recent rally from 31 Aug 2017 low + 08 Sep 2017 high) with short-term resistances remain at 0.7295 follow by 0.7337 (08 Sep 2017 high).
  • USD/JPY -  Swift rally after the bullish break of 108.90 upper neutrality zone as per highlighted yesterday, potential short-term corrective rebound validated. However, there is a risk of a pull-back first at this juncture before the start of another upleg within the aforementioned short-term corrective rebound phase as the hourly RSI and Stochastic oscillators have started to flash bearish divergences signal. Potential pull-back zone will be at  108.70/40 with key short-term support at 108.10 (close to 61.8% Fibonacci retracement of the current rally from 08 Sep 2017 low + yesterday’s gap) with the next short-term resistance coming in at  110.10/30 (38.2% Fibonacci retracement of the medium-term decline from 11 Jul 2017 high to 08 Sep 2017 low).

Commodities

  • Gold – Broke below 1330 that validated the potential short-term mean reversion corrective decline within a medium-term uptrend in place since 10 July 2017 low. Hourly Stochastic oscillator has reached an extreme oversold level which highlights the risk of minor bounce at this juncture towards 1338/40 with key short-term resistance now at 1346 (yesterday’s gap + 61.8% Fibonacci retracement of the current decline from 08 Sep 2017 high) before another potential push down towards the next  support at 1310 in the first step.
  • WTI Crude (Oct 2017) – No change, still below 48.90 key short-term resistance for a potential push down to retest the 46.70 support before 45.60 (31 Aug 2017 low) within a longer-term complex range configuration in place since the start of 2017.

Stock Indices (CFD) –Short-term resistance met for S&P 500, risk of a minor pull-back

  • US SP 500 – Rallied and met the short-term resistance zone/target of 2485/90 as expected. Hourly Stochastic oscillator has started to flash a bearish divergence signal at its overbought zone. Risk of a pull-back below 2495 towards 2471/67 short-term support zone.
  • Japan 225 – Rallied towards 19800 key medium-term range resistance (see latest weekly technical outlook) with a bearish divergence signal seen in hourly Stochastic oscillator at  its overbought zone at this juncture. Risk of a pull-back towards 19550/470 short-term support zone.
  • Hong Kong 50 – Continued to hover above 27820 (previous upside trigger level). Tightened key short-term support to 27760 (former minor swing high of 07 Sep 2017 + pull-back support of former minor descending trendline from 30 Aug 2017 high) to maintain short-term uptrend movement from 06 September 2017 low with short-term resistances at 28160 and 28300.
  • Australia 200 – Short-term resistances/target met at 5755/60 as expected. Mix elements at this juncture with hourly Stochastic oscillator at an extreme overbought level. Turn neutral between 5770 and 5740.
  • Germany 30 – Rallied and almost met the short-term resistance zone of 12550/12570 as expected. Risk of a pull-back below 12570 towards 12340/330 short-term support zone.

*Levels are obtained from City Index Advantage TraderPro platform

Disclaimer

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.


Related tags: Commodities Forex Indices

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