Daily Key Short Term Technical Levels Mon 20 Nov 2017

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By :  ,  Financial Analyst

FX – EUR/USD tumbled towards key medium-term support zone where a potential recovery may occur

  • EUR/USD Broke below 1.1780 key short-term support in today (20 Nov) early Asian session triggered by German Chancellor Markel failed to form a  3-way coalition government thus invalidated the direct rise scenario. Interestingly, it tumbled straight to the initial minor corrective decline target of 1.1725/1705 that was mentioned in the last Thurs, 16 Nov report) which is key the medium-term support (pull-back support of the former medium-term descending channel resistance from 08 Sep 2017 high + 50% Fibonacci retracement of the current up move from  07 Nov low to 15 Nov 2017 high + ascending trendline from 07 Nov 2017). Thus, the medium-term (multi-week) uptrend in place since 07 Nov 2017 remains intact. Thus maintain bullish bias above 1.1725/1705 key medium-term support with 1.1780 as the upside trigger level (to increase conviction) for a potential recovery towards the next intermediate resistance of 1.1880 in the first step.
  • GBP/USD No change, maintain bullish bias above 1.3180/3170 (excess) tightened key short-term support for a further potential push up to test the minor sideways configuration (in place since 06 Oct 2017) range upper limit/resistance of 1.3300/3325.
  • AUD/USD – Drop in progress as expected. Maintain bearish bias below tightened key short-term resistance now at 0.7575 (former minor swing low area of 16 Nov 2017 + close to 23.6% Fibonacci retracement of the decline from 02 Nov 2017 high to last Fri, 17 Nov low) for a potential last push down towards the 0.7520/0.7500 key medium-term support (lower boundary of the descending channel from 08 Sep 2017 high + major ascending trendline from Jan 2016 low + Fibonacci projection cluster).
  • NZD/USD - Drop in progress as expected. Maintain bearish bias below tightened key short-term resistance now at 0.6836 (former minor swing low area of 16 Nov 2017 + close to 23.6% Fibonacci retracement of the decline from 09 Nov 2017 high to last Fri, 17 Nov low) for a potential push down towards 0.6745/6720 intermediate support (lower boundary of a minor descending channel from 17 Oct 2017 high + Fibonacci projection cluster).
  • USD/JPY Declined as expected from the 113.30 short-term resistance as per highlighted in previous report. In today (20 Nov) early Asian session, it has almost reached the predefined 111.70 short-term support/target (printed a current intraday low of 111.89. Now at risk of a minor rebound/consolidation at 111.70 in terms of Elliot Wave/fractal analysis coupled with the 4 hour Stochastic oscillator that is hovering close to an extreme oversold level before another potential minor degree impulsive bearish wave sequence materialises. Potential corrective rebound/consolidation target stands at 112.40 (38.2% Fibonacci retracement of the current decline from 16 Nov 2017 high to today current intraday low of 111.89 + former minor swing low area of 17 Nov 2017). Maintain bearish bias below tightened key short-term resistance now at 112.65 (former minor swing low area of 15 Nov 2017 + close to minor descending channel resistance from 14 Nov 2017 high + 50% Fibonacci retracement of the current decline from 16 Nov 2017 high to today current intraday low of 111.89) for a further potential push down to target the next intermediate support at 111.35/20 (Fibonacci projection cluster + exit target of minor “Head & Shoulders” configuration from 25 Oct 2017 bearish breakout).

Commodities – Gold bullish breakout from minor range consolidation

  • Gold Broke above 1290 upper neutrality limit (minor range resistance since 20 Oct 2017. Turn bullish above 1287/83 (former minor swing high of 15 Nov 2017 + 61.8% Fibonacci retracement of the recent up move from 16 Nov to last Fri, 17 Nov U.S. session high) for a further potential push up towards the intermediate resistance of 1306/1310 in the first step.
  • WTI Crude (Jan 2018) – Challenged the 56.40/65 key short-term resistance (tolerate the excess to 56.91 after taking into account of the expiry of the previous Dec contract). Maintain bearish bias below 56.91 for a potential bearish reversal to retest the intermediate support s of 55.83 follow by 55.18 next.

 Stock Indices (CFD) – Minor corrective decline phase remains intact

  • US SP 500 – Retreated from 2588/90 upper neutrality limit as per highlighted in previous report. No change, watch the 2565 lower neutrality limit and a break below 2565 shall reinforce the start of another potential minor degree bearish impulsive wave sequence to target the next intermediate support at 2544.
  • Japan 225 – No change, maintain bearish bias below 22800 key short-term resistance for a potential drop to retest 15 Nov 2017 swing low of 21860 before targeting the next intermediate support at 21650/600.
  • Hong Kong 50 – No change, maintain bearish bias below 29300/315 key medium-term resistance for a potential push down to retest 28880 minor swing low area of 15 Nov 2017.
  • Australia 200 – Broke below 5950 (minor ascending trendline from 15 Nov 2017 low). Maintain bearish bias below tightened key short-term resistance now at 5952 (today’s gapped down) for further potential push down the 5900 intermediate support.
  • Germany 30 – Drop in progress as expected. Maintain bearish bias below tightened key short-term resistance now at 13027 for further potential push down to retest 12860 minor swing low area of 15 Nov 2017 before targeting the next support at 12720/700 (Fibonacci cluster) in the first step.

*Levels are obtained from City Index Advantage TraderPro platform

Disclaimer

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Related tags: Commodities Forex Indices

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