Sample Category Title

Pivot (invalidation): 0.6860

Our preference Short positions below 0.6860 with targets at 0.6830 & 0.6815 in extension.

Alternative scenario Above 0.6860 look for further upside with 0.6875 & 0.6885 as targets.

Comment The RSI lacks upward momentum.

Pivot (invalidation): 1.3385

Our preference Long positions above 1.3385 with targets at 1.3425 & 1.3450 in extension.

Alternative scenario Below 1.3385 look for further downside with 1.3350 & 1.3320 as targets.

Comment Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Pivot (invalidation): 1.0000

Our preference Short positions below 1.0000 with targets at 0.9960 & 0.9940 in extension.

Alternative scenario Above 1.0000 look for further upside with 1.0025 & 1.0045 as targets.

Comment The RSI is bearish and calls for further downside.

Pivot (invalidation): 108.55

Our preference Short positions below 108.55 with targets at 108.15 & 108.00 in extension.

Alternative scenario Above 108.55 look for further upside with 108.70 & 108.90 as targets.

Comment The RSI has broken down its 30 level.

Pivot (invalidation): 1.2565

Our preference Short positions below 1.2565 with targets at 1.2500 & 1.2470 in extension.

Alternative scenario Above 1.2565 look for further upside with 1.2600 & 1.2620 as targets.

Comment The immediate trend remains down and the momentum is strong.

Daily Pivots: (S1) 135.71; (P) 136.32; (R1) 136.65; More...

GBP/JPY drops to as low as 135.53 so far today. Intraday bias remains on the downside at this point. Current decline from 148.87 should extend to retest 131.51 low. On the upside, break of 138.32 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.

In the bigger picture, current development suggests that GBP/JPY's medium term fall from 156.59 (2018 high) is still in progress. Break of 131.51 will target 122.36 (2016 low). Structure of such decline is corrective looking so far, arguing that it's just the second leg of consolidation from 122.36. Thus, we'd expect strong support from 122.36 to contain downside to bring reversal.

Daily Pivots: (S1) 121.52; (P) 121.83; (R1) 122.05; More....

Intraday bias in EUR/JPY remains on the downside for retesting 120.789 support. Decisive break there will resume the larger decline from 127.50 will target 118.62 low next. On the upside, above 122.17 minor resistance delay the bearish case, turn intraday bias neutral and bring more consolidations first.

In the bigger picture, down trend from 137.49 is still in progress with the cross staying inside long term falling channel. Break of 118.62 will extend the fall to 109.48 (2016 low). On the upside, break of 127.50 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.

Pivot (invalidation): 1.1215

Our preference Long positions above 1.1215 with targets at 1.1240 & 1.1265 in extension.

Alternative scenario Below 1.1215 look for further downside with 1.1200 & 1.1185 as targets.

Comment The RSI calls for a rebound.

The precious metal closed on Monday, down 0.17%. Trading was subdued on the day as price held steady near a year and a half highs. Lack of major economic data and a rather quiet trading session left the precious metal to post intraday lows before pulling back. However, the overall movement remains bullish as the precious metal remains hovering near the highs.

XAUUSD is Likely to Drift Sideways

Price action in XAUUSD suggests no major changes in the near term and could remain trading sideways in the short term. This comes ahead of the Fed meeting on Wednesday. The support level at 1320 remains a key price level of interest. Gold will have to break past the short term pivot lows of 1333.78 in order to confirm further downside to 1320.

WTI Crude oil prices resumed the declines as fundamentals remained soft. Oil prices fell back to the previously marked support area of 51.70 on Monday. The American Petroleum Institute (API) will be releasing the weekly inventory report ahead of the EIA’s report later in the week. Last week’s report from the EIA on global waning demand continues to weigh on oil prices.

WTI Forms a Descending Triangle Pattern

The current price action suggests that crude oil prices are shaping into a descending triangle pattern. The support level at 51.70, therefore, becomes critical at this stage. A breakdown of this support could see oil prices extending the declines lower. Alternately, if the support holds, we could expect an upside breakout. This will likely see oil prices extending gains to the highs of 54.36.