Sample Category Title

Pivot (invalidation): 1.2830

Our preference Short positions below 1.2830 with targets at 1.2795 & 1.2765 in extension.

Alternative scenario Above 1.2830 look for further upside with 1.2865 & 1.2890 as targets.

Comment A break below 1.2795 would trigger a drop towards 1.2765.

Pivot (invalidation): 1.1350

Our preference Short positions below 1.1350 with targets at 1.1320 & 1.1300 in extension.

Alternative scenario Above 1.1350 look for further upside with 1.1380 & 1.1400 as targets.

Comment As Long as the resistance at 1.1350 is not surpassed, the risk of the break below 1.1320 remains high.

XAUUSD (1226.06): Gold has turned rather flat over the past few daily sessions. Price action is seen consolidating near the support/resistance area of 1223.50 for a while now. This could potentially signal a downside bias toward the 1214 level. A retest of this minor support level could renew the upside bias in gold. If gold prices break down below 1214, then we expect to see further declines pushing the precious metal down o 1204.08. For the near term, the upside momentum looks to be fading.

GBPUSD (1.2813): Price action in GBPUSD has remained flat with prices trading firmly near the support area of 1.2808. This consolidation is likely to continue in the near term with the risk of a break down below this level. The lower support at 1.2683 will be the likely next target to the downside. To the upside, as long as the support at 1.2808 holds, GBPUSD could be attempting to push to the upside. This could expose the previously established resistance level near 1.3086 as the upside target in price.

EURUSD (1.1337): The EURUSD was seen trading relatively subdued with price action staying within the established range. We expect the downside to prevail as the common currency is most likely to retest the 1.1300 - 1.1315 level of support. A rebound off this level could put the bias back to the upside. A breakout of the resistance level at 1.1435 will be required to confirm the upside bias in price. To the downside, the falling trend line could act as dynamic support.

The U.S. Dollar was seen trading firm, riding on the back of Trump's comments on China. President Trump renewed his rhetoric against China as he said on Monday that he would resume the tariffs against China to 25%. The comments come ahead of the G20 summit where China and the U.S. are expected to hold further talks. Currently, the Trump administration has imposed a 10% tariff which is likely to increase as per his comments.

On the economic front, the ECB President Mario Draghi said that the Central Bank will be ending its QE program. Speaking in Brussels, the ECB President said that the recent economic data was weaker than expected. However, he said that the slowdown was only temporary.

The German Ifo business climate showed that the business sentiment eased to 102.0, which missed estimates of 102.3 and weaker than 102.9 from the month before.

The Bank of Japan released its core CPI report today. Data showed that core inflation rose 0.6% on the year in October. This was slightly better than the estimates which pointed to a 0.5% increase. The day ahead is relatively quiet with mostly second-tier data in the store.

The NY trading session will see the release of the consumer confidence report from the Conference Board. The U.S. consumer confidence is expected to ease to 136.2 following an increase to 137.9 previously. Later, Fed member Bostic will be speaking followed by the Reserve Bank of New Zealand releasing its financial stability report.

GBPUSD retains sideways movement in the near term, finding strong resistance at the 1.3255 barrier and support at the 1.2690 level. Also, over the last couple of weeks, the price dived below the 20- and 40-simple moving averages (SMAs) but has failed to post a significant bearish rally.

Momentum indicators, signal that the market holds in a consolidation mode as the RSI indicator is flattening below its threshold of 50, while the MACD oscillator stands near the trigger line and below the zero line with weak movement.

In case of a sharp negative run, investors would turn their attention towards the 14-month low of 1.2660 and the 1.2690 support. Further declines may open the way towards 1.2580 where the price registered significant rebound on June 2017, confirming once again the long-term bearish structure.

On the other side, cable could find immediate resistance at the 20-day SMA, which hovers near the 1.2900 handle, while even higher, the 40-day SMA around 1.2960 could act as major resistance as well. Slightly higher, the 23.6% Fibonacci at 1.3065 could be the next level to look for, while if this fails to hold, bullish actions may then try to overcome the previous peak and touch the 1.3170 resistance.

Overall, any penetration of the trading range would adjust the market sentiment accordingly. A close above 1.3255 would bring a more bullish view back into play, however a daily closing candle below 1.2690 would resume the bearish phase.

Daily Pivots: (S1) 144.75; (P) 145.25; (R1) 146.01; More...

GBP/JPY is staying in consolidation inside 144.02/145.99 and intraday bias remains neutral first. As long as 145.99 resistance holds, further decline is mildly in favor. On the downside, break of 144.02 will resume the fall from 149.48 and target 139.39/47 key support zone. On the upside, above 145.99 support turned resistance could bring stronger rebound. But near tem outlook will be neutral at best as long as 149.70 key resistance holds.

In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) would still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish. In that case, next target is 61.8% retracement at 135.43.

Daily Pivots: (S1) 128.10; (P) 128.51; (R1) 129.09; More....

EUR/JPY is staying in range of 127.49/129.10 and intraday bias remains neutral. Near term outlook stays mildly bearish as long as 130.14 resistance holds. On the downside, below 127.49 will target 126.63 support first. Break there will resume whole fall from 133.12 and target 124.08/89 support zone. On the upside, however, break of 130.14 will resume the rebound from 126.63 towards 133.12 resistance.

In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) is still in progress. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.

Daily Pivots: (S1) 0.8831; (P) 0.8850; (R1) 0.8864; More...

EUR/GBP recovers after drawing support from 4 hour 55 EMA. But it's staying in range below 0.8931 and intraday bias remains neutral. Further rally is expected as long as 0.8824 minor support holds. On the upside, firm break of 0.8939 resistance will target 0.9098 resistance next. However, break of 0.8824 will now suggest completion of the rebound from 0.8655. Intraday bias will be turned back to the downside for 0.8655 support instead.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Sustained break of 0.8939 resistance will confirm that it's in a medium term rising leg for 0.9098 and above. And for now, in case of another fall, downside will likely be contained by 0.8620/55 support zone to bring rebound.