EURUSD On the upside, break of 1.1830 will resume the rebound from 1.1612 to retest 1.2011 high. On the downside, break of 1.1719 will suggest that correction from 1.2011 is extending with another leg. Intraday bias will be turned back to the downside for 1.1612 and below.
The GBPUSD Rollercoaster continues. Brexit deadline expires today and there is no agreement yet. Roller coaster continues. Depending on the outcome of the Brexit negotiations and whether talks continue or not, the Brexit rollercoaster continues. This is the market risk. Technically sellers come around 1.3045-56 zone, while buyers show within 1.2885-98 zone. Targets are pivot point in-between. Breakouts to the upside are possible above 1.3080 towards 1.3120 and 1.3159. Breakouts to the bottom are possible below 1.2860 towards 1.2840 and 1.2805.
USDJPY looks to move further lower after selling off on Wednesday. On the downside, support comes in at 105.00 level. Below this level will turn attention to the 104.50 level. Further down, support is seen at the 104.00 level. A cut through here will open the door for more decline towards the 103.50. Its daily RSI is bearish and pointing lower suggesting further decline. On the upside, resistance comes in at the 105.50 level where a break will target the 106.00 level. Below that level will turn focus to the 106.50 level and then lower towards the 107.00 level. On the whole, USDJPY faces further downside threats.
EUR/JPY remains on the downside at this point. Corrective recovery from 122.37 should have completed at 125.08. Deeper fall would be seen to 38.2% retracement of 114.42 to 127.07 at 122.23. Firm break there will confirm resumption of whole corrective fall from 127.07, and target 61.8% retracement at 119.25, which is close to 119.31 key support. On the upside, though, break of 125.08 will turn bias back to the upside for retesting 127.07 instead.
The Australian dollar was bearish against most of its major pairs with the exception of the CAD and USD. On Thursday, we can expect some key employment data to be released. The employment change in Sept is anticipated to decline 40K from a gain of 111K in Aug. Full Time employment is anticipated to decline by 10K from a gain in 36.2K previous. The Australian unemployment rate is expected to rise to 7% in Sept from 6.8 prior. Part time employment may drop by 30K in Sept from a gain of 74.8K prior. With the anticipated drop in employment, the AUDUSD has signaled its recent uptrend has come to an end. The pair confirmed a bearish cross after the 20-day crossed back below the 50-day moving average. The uptrend that started with the bullish crossover of the moving averages at the end of April lasted approximately 110 trading days with a gain of around 14 percent. Key resistance can be seen at the 0.725 area with a preference to the downside to reach 0.7025 support and ultimately 0.692 in extension.
USD/CAD is staying in consolidation above 1.3099 temporary low and remains neutral first. Further fall is still expected as long as 1.3242 support turned resistance holds. Below 1.3099 will target a test on 1.2994 low first. Firm break of 1.2994 will confirm and target 61.8% projection of 1.4667 to 1.2994 from 1.3418 at 1.2384. On the upside, though, break of 1.3242 support turned resistance will dampen this bearish case and turn bias to the upside for 1.3418 resistance instead.
Gold prices retreated from resistance defining the downtrend since mid-August. Support is in the 1848.66-63.27 area, with a daily close below that threatening a decline below $1800/oz. Alternatively, a daily close above the outer layer of resistance at 1934.00 puts the $2000/oz figure back into the crosshairs.
Crude oil prices are hovering near range resistance in the 42.40-43.88 area. A pullback from these levels eyes support in the 34.64-36.15 zone, with a daily close below that targeting the 27.40-30.73 region next. Alternatively, establishing a foothold above resistance may expose the $50/bbl figure.
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