The euro currency is maintaining its bullish hold. After rising off the 1.1700 level earlier in the past few sessions, price action broke past 1.1800 on Tuesday. With prices breaking out above the 1.1800 level, further gains could be likely. This will potentially set the euro currency on track to test the 1.1900 level of resistance which held up last time around. To the downside, the risks are limited to the 1.1800 level.
GBP/USD is still staying in range of 1.2845/3082 for the moment. Another rise is expected. On the upside, above 1.3082 will resume the rebound from 1.2675 for retesting 1.3482 high. On the downside, however, break of 1.2845 will indicate that fall from 1.3482 is not over. Intraday bias will be turned back to the downside for 38.2% retracement of 1.1409 to 1.3482 at 1.2690.
USD/JPY remains neutral at this point. Another rise is still mildly in favor as long as 104.94 support holds. Break of 106.10 resistance will extend the rebound from 104.00 towards 106.94 resistance. Sustained break there should confirm completion of the whole decline from 111.71. On the downside, break of 104.94 support will revive near term bearishness and target a test on 104.00 low instead.
EUR/JPY is still limited below 125.08 resistance despite current rebound. On the downside, below 123.01 will target 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 target a retest on 127.07 high.
AUD/USD’s decline lost momentum ahead of 0.7005 support and recovered. Further fall is expected as long as 0.7114 resistance holds. Break of 0.7005 will resume the corrective fall from 0.7413 to 38.2% retracement of 0.5506 to 0.7413 at 0.6685. However, break of 0.7114 will turn bias back to the upside for 0.7243 resistance instead.
From a technical perspective, the USD/CAD exchange rate’s outlook remains skewed to the downside, as price continues to track within the confines of a Descending Channel after failing to break back above confluent resistance at the 21-day moving average (1.3200) and 38.2% Fibonacci (1.3228). The development of the RSI and MACD indicator hints at swelling bearish momentum, as both oscillators continue to track firmly below their respective midpoints. With that in mind, a daily close below the October 13 swing-low (1.3099) would probably signal the resumption of the primary uptrend and carve a path for price to test key support at the 50% Fibonacci (1.3039). Conversely, a reversal higher could be in the offing if the psychologically imposing 1.3100 mark successfully stifles buying pressure, with a break back above the 21-DMA (1.3200) potentially generating a test of Descending Channel resistance and the October 15 swing-high (1.3259).
Oil prices are trading flat one day after price action attempted to break past the 41.00 handle. The muted price action comes amid weakening forecasts for crude oil. Furthermore, talks of Russia supporting cutbacks to production is offsetting the bearish sentiment. n the near term, we expect crude oil prices to continue trading flat. The price action could be confined to the range between the 41.00 and the 39.50 levels for the short term. In the medium-term outlook, there is scope for price action to breakout higher. But this is subject to oil prices breaking past the 41.00 -41.50 level of resistance.
The precious metal is trading mixed with price action steady near the 1900 -1911.50 level. There is a minor resistance level building up near the 1920 handle. If price action breaks past this level, it will potentially trigger further gains. The next upside target will be the 1980 handle, where price tested this level before declining. Therefore, for the moment, the 1920 level will be key, followed by the 1980 handle next. To the downside, this bias could shift if gold prices slip below 1890.
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