EUR/USD – Challenging the 1.1000 resistance

After a slide to test the 1.0940 o Tues 08 Oct, the pair has staged a rebound to challenge the 1.1000 key short-term pivotal resistance as per highlighted in our previous report. No change, maintain bearish bias with excess at 1.10020 and bears need to have a break below 10.940 to reinforce the start of another potential downleg sequence to target the next support at 1.0860 in the first step.

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On the other hand, a clearance with an hourly close above 1.1000 invalidates the bearish scenario for an extended corrective rebound towards the 13 Sep 2019 swing high of 1.1110 and even the key medium-term resistance at 1.1160.

GBP/USD – No clear signs of bullish reversal

The pair has shaped the expected push and almost hit the short-term downside target of 1.2170 (click here for a recap). It printed a low of 1.2193 on 08 Oct with no clear signs of bullish reversal at this juncture. Maintain bearish bias with a tightened key short-term pivotal resistance now at 1.2290 for another potential downleg to target the next supports at 1.2120 and 1.2030 (lower boundary of the minor descending channel from 20 Sep 2019 high & 1.00 Fibonacci expansion of the on-going decline from 20 Sep high to 01 Oct low projected from 03 Oct 2019 high).

On the other hand, a clearance with an hourly close above 1.2290 negates the bearish tone for a corrective rebound to retest the 03 Oct 2019 swing high of 1.2415.

USD/JPY – Bearish flag/potential dead-cat bounce below 107.70 resistance

The on-going rebound from 06 Oct low of 106.54 has stalled at the 107.70 key short-term pivotal resistance as per highlighted in our previous report. Maintain bearish bias and a break below 106.95 (also the lower limit of the “bearish flag”) reinforces the start of a potential downleg sequence to target the next support at 106.00 in the first step (former range resistance from 06 Aug 2019 & the 61.8% Fibonacci retracement of the recent up move from 26 Aug low to 01 Oct 2019 high).

On the other hand, a clearance with an hourly close above 107.70 sees a squeeze up to retest the minor range resistance of 108.50.

AUD/USD – Sideways

The pair has tested the 0.6715 lower limit of the short-term neutrality range zone in today’s Asian session before it staged a rebound of 46 pips to print a current intraday high of 0.6756. No change, maintain neutrality stance between 0.6175 and 0.6780. Bears need to have an hourly close below 0.6715 to reinforce the start of a potential downleg sequence to target the next support at 0.6620 in the first step.

On the flipside, a clearance with an hourly close above 0.6780 sees a further corrective rebound to retest the 12 Sep 2019 swing high area of 0.6890.

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