EUR/USD is staying in consolidation from 1.1880 temporary top and remains neutral. With 1.1688 support intact, further rise remains in favor. On the upside, break of 1.1880 will target a test on 1.2011 high. On the downside, though, break of 1.1688 will likely extend the corrective pattern from 1.2011 with another leg. Intraday bias will be turned back the downside for 1.1612 and below.
GBP/USD started a major downside correction from the 1.3176 high against the US Dollar. GBP/USD traded below the 1.3100 support, but it is now approaching a few important support levels. Looking at the 4-hours chart, the pair traded below the 50% Fib retracement level of the upward move from the 1.2910 swing low to 1.3176 high. There was also a close below the 1.3080 and 1.3060 support levels. On the downside, the 1.3000 handle is a major support. There is also a crucial bullish trend line forming with support near 1.2975 on the same chart. The trend line coincides with the 100 simple moving average (4-hours), and the 76.4% Fib retracement level of the upward move from the 1.2910 swing low to 1.3176 high. The next major support is near the 1.2910 zone and the 200 simple moving average (4-hours). As long as the pair is above the trend line support and the 100 SMA, it could start a fresh increase. On the upside, an initial resistance is near the 1.3080 level. The first major resistance is near 1.3100, above which GBP/USD might rise towards the 1.3175 and 1.3200 levels.
Despite breaching 105.03 support turned resistance, USD/JPY couldn’t sustain above the level and retreated. Intraday bias stays neutral first. On the downside, break of 104.34 will will target 104.00 low first. Break will resume larger decline from 111.71. Nevertheless, sustained break of 105.03 support turned resistance will neutralize immediate near term bearishness. Intraday bias will be turned back to the upside for 106.10 resistance instead.
EUR/JPY is staying in range of 123.01/125.08. On the upside, break of 125.08 will resume the rebound from 122.37 to retest 127.07. Nevertheless, break of 123.01 will argue that correction from 127.07 is possibly extending with another falling leg. Intraday bias will be turned back to the downside for 38.2% retracement of 114.42 to 127.07 at 122.23.
The Australian Dollar is trading within a bearish Descending Triangle against the US Dollar. This also follows a bearish ‘Death Cross’ after the short-term 20-day Simple Moving Average (SMA) crossed under the medium-term 20-day one. However, AUD/USD remains in a consolidative mode given that the floor of the triangle is holding. A breach under support (0.7006-0.7043) would open the door to resuming August’s top. Otherwise, a push above the ceiling of the triangle brings the August high back into the crosshairs.
The USD/CAD pair extended its steady intraday retracement slide and dropped to fresh session lows, around the 1.3170 region in the last hour. A combination of negative factors failed to assist the pair to build on the previous day's strong positive move of around 100 pips, instead prompted some fresh selling during the first half of the trading action on Tuesday.
Technically, WTI crude oil prices failed again to break a key resistance at the US$ 41.00-41.50 area (highlighted on the chart below) and have entered into consolidative period since. The near-term trend appeared to be bearish-biased as the MACD indicator has likely formed a “Death Cross”. The price has also broken the 20-, 50- and 100- Day Simple Moving Average (SMA) lines simultaneously, opening the room for more downside potential. An immediate support level could be found at US$ 38.6 – the lower Bollinger Band.
Gold edged higher during the Asian session on Tuesday and was last seen hovering near the top end of its daily trading range, just below the $1910 region. Having shown some resilience below the $1900 level, the precious metal managed to regain some positive traction and moved away from seven-day lows set in the previous session. The uncertain US political environment kept the US dollar bulls on the defensive, which was seen as a key factor lending some support to dollar-denominated commodities – including gold.
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