Sample Category Title

Pivot (invalidation): 1.2400

Our preference Short positions below 1.2400 with targets at 1.2350 & 1.2330 in extension.

Alternative scenario Above 1.2400 look for further upside with 1.2425 & 1.2445 as targets.

Comment The RSI has broken down its 30 level.

Pivot (invalidation): 1.1120

Our preference Long positions above 1.1120 with targets at 1.1140 & 1.1150 in extension.

Alternative scenario Below 1.1120 look for further downside with 1.1110 & 1.1100 as targets.

Comment A support base at 1.1120 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 3011.00

Our preference Long positions above 3011.00 with targets at 3041.00 & 3052.00 in extension.

Alternative scenario Below 3011.00 look for further downside with 2997.00 & 2984.00 as targets.

Comment The RSI is bullish and calls for further upside.

Pivot (invalidation): 12340.00

Our preference Long positions above 12340.00 with targets at 12460.00 & 12530.00 in extension.

Alternative scenario Below 12340.00 look for further downside with 12290.00 & 12230.00 as targets.

Comment The RSI calls for a bounce.

The strong gains witnessed in gold is seeing a shift as price turns rather flat. The precious metal has been trading weaker. This comes as investors are now discounting just a quarter basis point rate cut. However, a lot will depend on how dovish the Fed will be at this week’s meeting.

XAUUSD Likely to Maintain a Flat Range

The precious metal has been consolidating near the resistance area of the 1431–1428 region. Price is likely to remain at these levels into Wednesday’s FOMC meeting. As a result, there is a downside risk that XAUUSD could slip to the 1404 level where support has been initially established. In the near term, we expect gold to hold flat ahead of further market developments.

Daily Pivots: (S1) 1.3150; (P) 1.3174; (R1) 1.3192; More...

Intraday bias in USD/CAD remains mildly on the upside at this point. Rebound from 1.3016 short term bottom should target 55 day EMA (now at 1.3212). Sustained break there would pave the way back to 1.3564/3664 resistance zone. On the downside, break of 1.3116 minor support will turn bias back to the downside for 1.3016 low instead.

In the bigger picture, focus stays on 1.3068 cluster support (38.2% retracement of 1.2061 to 1.3664 at 1.3052) will confirm completion of up trend from 1.2061 (2017 low). Further fall should be seen to 61.8% retracement at 1.2673 next. On the upside, sustained break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685, is needed to confirm resumption of up trend from 1.2061 (2017 low). Otherwise, risk will stay on the downside.

Following the election of Boris Johnson as Prime Minister of the United Kingdom, the sterling is seen posting losses. This came amid reports of most of the cabinet members in Johnson’s administration being euro-skeptics. While the new administration wanted to negotiate a new Brexit deal, EU officials ruled out further talks. The British PM, however, said that the UK was committed to leaving the EU on October 31st.

GBPUSD at Risk of Falling to 1.20

The currency pair has been extending strong losses with Brexit now dominating the headlines once again. With price breaking below the initial support at 1.2426, the sterling remains dovish. However, the scope of the declines could be limited given the upcoming Fed meeting this week as well as the Bank of England’s monetary policy meeting.

Daily Pivots: (S1) 0.6891; (P) 0.6923; (R1) 0.6943; More...

Intraday bias in AUD/USD remains on the downside for the moment. Rebound from 0.6831 should have completed at 0.7082 already. The three wave corrective structure suggests that larger decline from 0.7295 is in progress and is possibly resuming. Further fall should be seen back to 0.6831 support first. Break will confirm and target 0.6722 low next. On the upside, break of 0.6955 minor resistance will turn intraday bias neutral again.

In the bigger picture, with 0.7393 key resistance intact, medium term outlook remains bearish. The decline from 0.8135 (2018 high) is seen as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.

The euro currency was seen trading weaker on Friday. The losses came a day after the ECB hinted at restarting its QE purchases and also cutting interest rates even lower. The stronger greenback following the GDP report also helped to keep the pressure upon the euro currency. Meanwhile, ECB forecasts said that they expect inflation to be around 1.7% in the longer term while forecasting a 1.3% average inflation rate for 2019.

Will EURUSD be Able to Rebound off the Lows?

EURUSD price action is currently near the previously established lows of 1.1140. The common currency is supported by the trend line and the horizontal support area as well. This could potentially trigger a short term rebound. However, price could remain caught within the range of 1.1250 resistance area. To the downside, a close below 1.1140 could signal further declines, as the EURUSD could test 1.1100.

Daily Pivots: (S1) 108.55; (P) 108.69; (R1) 108.82; More...

Intraday bias in USD/JPY remains mildly on the upside for 108.99 resistance. Break will resume whole rebound from 106.78 and target 100% projection of 106.78 to 108.99 from 107.21 at 109.42 and then 161.8% projection at 110.78. On the downside, below 107.93 minor support will turn bias back to the downside instead.

In the bigger picture, decline from 118.65 (Dec 2016) not completed yet, with the pair staying inside long term falling channel. Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51. For now, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. In any case, break of 112.40 is needed to the first serious sign of medium term bullishness. Otherwise, further decline will remain in favor in case of rebound.