Sample Category Title

Pivot (invalidation): 5.3780

Our preference Long positions above 5.3780 with targets at 5.4020 & 5.4180 in extension.

Alternative scenario Below 5.3780 look for further downside with 5.3650 & 5.3490 as targets.

Comment The RSI is mixed with a bullish bias.

Pivot (invalidation): 0.7065

Our preference Short positions below 0.7065 with targets at 0.7015 & 0.6990 in extension.

Alternative scenario Above 0.7065 look for further upside with 0.7090 & 0.7115 as targets.

Comment The RSI shows downside momentum.

Pivot (invalidation): 1.3325

Our preference Long positions above 1.3325 with targets at 1.3400 & 1.3425 in extension.

Alternative scenario Below 1.3325 look for further downside with 1.3300 & 1.3270 as targets.

Comment The RSI shows upside momentum.

Pivot (invalidation): 1.0020

Our preference Long positions above 1.0020 with targets at 1.0070 & 1.0090 in extension.

Alternative scenario Below 1.0020 look for further downside with 0.9995 & 0.9975 as targets.

Comment The RSI shows upside momentum.

Here is an update on our position trading strategy last updated in the weekly report. To recap, we maintained our bearish view on Aussie, but we're not convinced regarding Yen's strength. Therefore, we decided to switch from AUD/JPY short to AUD/USD this week. The AUD/JPY short (entered at 78.40) was closed at 79.50 at weekly open, with 110 pips loss.

AUD/USD's is entered today on break of 0.7050. Today's break of 0.7054 support should confirm completion of rebound from 0.6722 at 0.7295.

AUD/USD is staying inside medium term falling channel and failed to sustain above falling 55 day EMA. Both affirmed our bearish view. Further decline should be seen back to retest 0.6722 low in near term.

In the larger picture, the corrective rise from 0.6826 (2016 low) completed at 0.8135 after rejection by 55 month EMA. The dive to 0.6722 was a result of the currency flash crash earlier this year. Thus, AUD/USD couldn't sustain below 0.6826 low at that time. But we'd anticipate a firm break of 0.6722/6826 zone with the current fall to resume the long term down trend from 1.1079 to 0.6008 and below.

To conclude, we'll hold short in AUD/USD, with stop at 0.7125 first to give it some breathing room. 0.6722 is the first target and we'll assess the reaction from this level to decide whether to exit. But we're tentatively looking at 0.6008 as the point to close the trade.

Pivot (invalidation): 112.00

Our preference Short positions below 112.00 with targets at 111.60 & 111.30 in extension.

Alternative scenario Above 112.00 look for further upside with 112.15 & 112.40 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 1.3180

Our preference Short positions below 1.3180 with targets at 1.3095 & 1.3050 in extension.

Alternative scenario Above 1.3180 look for further upside with 1.3225 & 1.3255 as targets.

Comment The RSI shows downside momentum.

Pivot (invalidation): 1.1315

Our preference Short positions below 1.1315 with targets at 1.1285 & 1.1265 in extension.

Alternative scenario Above 1.1315 look for further upside with 1.1345 & 1.1370 as targets.

Comment The RSI shows downside momentum.

XAUUSD (1287.42): Gold prices closed with some modest gains on the day although price action remained bearish. This comes after prices declined for four consecutive sessions daily. The technical pattern indicates a near term correction that could take place if there is a bullish follow through to the upside today. However, there is a risk of gold prices testing the support at 1280 more firmly. To the upside, we expect the price level of 1304 – 1305 to be tested for resistance with the potential for a move higher toward the 1320 – 1321 level.

USDJPY (111.75): The USDJPY price action is suggesting some exhaustion to the rally. Price action has stalled its upside momentum near the highs of 111.89. If price starts to correct, then we expect USDJPY to slip briefly to the 111.21 level where support could be reestablished. This would eventually open the way for the USDJPY to post further gains in an attempt to target the next main resistance at 12.50.