Sample Category Title

Notes/Observations

• Risk-off tone prevailing
• Recent US data raising doubts about the pace of Federal Reserve rate hikes
• EU Commission's expected response to the Italian budget draft on Wed, Nov 21st

Asia:

• BOJ Gov Kuroda: In 2013 there was a need for bold monetary policy, now we need to persistently continue policy, there is no need to take additional measures now
• Arrest of Ghosn putting the future of Renault/Nissan/Mitsubishi alliance in question; respective boards all meeting this week to discuss the developments
• China PBoC Research Head Xu Zhong: Cannot mix up short-term macro policies with reform goals; downward pressure on China's economy has significantly increased, caused partially by prior policy adjustments

Europe:

• Northern Ireland DUP party reportedly abstained from govt budget votes as a warning to Tory leadership
• PM May said to have provisional agreement with EU to scrap Ireland backstop in order to win support from Brexiteers
• Brexiteers remain short of the 48 signatures needed to trigger a no confidence vote in PM May. The confidence vote now appears to be on hold until after Parliament votes next month on PM May's Brexit deal, which will itself be seen as a referendum on her leadership

Americas:

• President Trump reportedly sent letter to Commerce Sec Ross requesting he stay on in his position.
• Fed's Williams (moderate, voter): Expected FOMC to continue gradual tightening toward more normal rates in Dec

Macro

• (IT) Italy: Italian officials have been accusing the EU of stone-walling adding additional selling pressure on BTPS this morning. PM Conte is set to see European Commission President Juncker at a dinner this Saturday in Brussels, but while there are some signs that EU officials are trying to keep emotions in check but there is still no solution to the budget impasse, which will keep Italian assets vulnerable to bouts of risk aversion. The problem remains that the government remains intent on implementing their election promises also with view to the European Parliament elections next year, where populists across the EU want to make their mark.
• (UK) United Kingdom: BoE Governor Carney and MPC members testify in front of the Treasury Select Committee today and will clearly also be questioned on the BoE's reaction to a possible hard Brexit, especially since the Governor at the last BoE meeting suggested that a no-deal scenario could actually lead to rate hikes as well as cuts.
• (DE) Germany: PPI inflation increased 3.3% Y/Y in October with energy price inflation continuing to be the main driver, with energy prices up 8.4% y/y. Excluding energy producer prices were up only 1.6% y/y, still below the ECB's 2% limit for price stability, which is giving the ECB an excuse to continue with the aggressive expansionary policy and play down the impact of higher prices for the time being.. Underlying inflation pressures are beginni g to grow though as prior energy price increases feed through the product chain and wage growth starts to pick up.

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

• Indices [Stoxx600 -0.9% at 352, FTSE -0.6% at 6958, DAX -1.3% at 11095, CAC-40 -1.0% at 4935, IBEX-35 -1.1% at 8909, FTSE MIB -0.7% at 18655, SMI -0.4% at 8780, S&P 500 Futures -0.8%]
• Market Focal Points/Key Themes: Equities European Indices trade lower once again as selling momentum continues following weaker Asian markets and continuing weakness in the US. Brexit uncertainty as well as continuing trade tensions weigh. Renault shares continue their fall following the arrest of Nissan Chairman Ghosn; shares of Nissan and Mitsubishi traded lower in Asia. In other corporate news BTG shares trades sharply higher after a takeover from Boston Scientific; on the earnings front, Plus500 trades higher on positive guidance, Compass trades almost 5% higher are strong full year results; Spectris, Telecom Plus, Aveva Group among other names trading higher after earnings. KCOM, AO World, CYBG, Julius Baer among the decliners after earnings and trading updates; BASF trades lower after providing new targets under its new 'Excellence Program'. Looking ahead notable earners include Retail names, Bestbuy, Ross, TJX, Lowe's, Kohl's and Target as well as Campbells and Jacob's Engineering among others.
• Consumer discretionary: EasyJet [EZJ.UK] -3% (earnings; slightly adjusts guidance), Flybe [FLYB.UK] -10% (EasyJet cautious conf comments on potential takeover), Casino Guichard-Perrachon [CO.FR] -0.5% (new CFO), Homeserve [HSV.UK] +1.5% (earnings; COO to step down), Electrocomponents [ECM.UK] -5% (earnings; raises dividend), AO World [AO.UK] -10% (earnings)
• Consumer staples: Compass Group [CPG.UK] +3.5% (earnings)
• Energy: Enel [ENEL.IT] +2% (capital markets day)
• Financials: Deutsche Bank [DBK.DE] -5% (Danske Bank whistleblower Wilkinson: $150B of questionable funds went through U.S. unit of large European bank), Plus500 [PLUS.UK] +7% (trading update), Julius Baer [BAER.CH] -6% (reports AuM)
• Healthcare: BTG [BTG.UK] +34% (Boston Scientific offers to acquire for 840p/shr)
• Industrials: Renault [RNO.FR] -4.5% (board meeting today), Halma [HLMA.UK] +4% (earnings)
• Technology: Wirecard [WDI.DE] -7.5% (next year profit outlook), Spectris [SXS.UK] +6% (trading update), Sonova Holdings [SOON.CH] +0.5% (earnings; affirms outlook)
• Telecom: KCOM Group [KCOM.UK] -38% (profit warning)
• Materials: CRH [CRH.UK] -0.5% (earnings; next phase of buyback program)

Speakers

• ECB's Notwotny stated that higher Italian yields had no fast effect. ECB would stop buying bonds; could impact Italian demand; Italian bonds needed to be purchased by someone. He saw no reason to differ from ECB economic forecasts
• BOE Gov Carney with members Haldane, Cunliffe and Saunders testified at Treasury Select Committee
• BOE Gov Carney: Confident that BOE had all the measures it could have in place for financial stability. Emphasized importance of Brexit transition and noted of the possibility of extension. BOE forecasts assumed smooth transition. Analysis was a scenario not a forecast; declined to say if a 'no-deal' Brexit was more likely. By Feb the QIR would incorporate where we were heading
• BOE memebr Haldane (chief economist): Nov QIR remained the best guess on economy. Brexit uncertainty could make for a weaker Q$ - BOE member Cunliffe expected that a gradual tightening of monetary policy over the forecast horizon to be appropriate. Need for resistance in policy reaction has diminished over the year as policy has become clearer
• BOE member Saunders: Slack in economy had been used up, supply and demand were broadly in balanced. Saw growth in Q4 and Q1 slowing. No deal Brexit would hit investment and hiring
• BOE stated that the upcoming release of the Financial Stability Report and Stress Test results to be published on Nov 28th (from Dec 5th) citing a request from Treasury Select Committee . Date change related to Brexit analysis commissioned
• Austria financial stability Report: banks needed to improve costs and efficiency. Italian spillover had been very limited so far
• Eurogroup chief Centeno: Economic activity has moderated this year
• Italy Deputy PM Di Maio eiterated stance that solution can be found over budget with EU Commission if dialogue is open, but without getting rid of its main measures
• Spain PM Sanchez stated that he would call elections when it was in the country's best interest (**Reminder: on Nov 19th reports circulated that Spain Govt would not rule out a snap election in May). No budget for 2019 could mean early elections
• Czech President Zeman to name Mora and Nidetzky as Vice Governors at the central bank
• Turkey Fin Min Albayrak reiterated view that fighting inflation remained the govt priority. Oct Current Account data could be a record surplus (**Note: have seen two straight months of surpluses). Saw no slowing in either production or exports)
• RBA Gov Lowe reiterated stance that current policy was likely to be maintained. Overall economic picture was positive and getting closer to full employment. Saw more evidence of rising wages
• India Finance Ministry official: Fall global oil prices and a stabilizing INR currency (Rupee) to help economic growth in coming months
• Japan PM Abe: Next initial budget to have measures to address sales tax
• China Finance Ministry (MOF) official Tan Long reiterated view that economic uncertainties and downward pressures had increased

Currencies/Fixed Income

• The session saw a risk-off tone prevail with the typical safe-haven currencies benefiting (USD, CHF and JPY)
• EUR/USD initially tested the 1.1470 area before running into a wall. The 10-year Italy/German Gov't bond spread widened by over 10bps to approx 333bps for a 1-month high. Market participants saw little sign of an easing in the Italian government's budget dispute with the EU Commission with the vulnerability of the Italian government bond market likely to remain very high. EU Commission's expected response to the Italian budget draft seen on Wed, Nov 21st .
• GBP/USD was slightly lower and probing the lower end of the 1.28 handle. No date had yetbe set for the UK Parliament to vote on the Brexit deal and PM May could still face a no-confidence vote before then

Economic Data

• (NO) Norway Q4 Consumer Confidence: 14.6 v 15.2 prior
• (FR) France Q3 ILO Unemployment Rate: 9.1% v 9.2%e; Mainland Unemployment Rate: 8.8% v 8.9%e; Mainland Unemployment Change: +22K v -44K prior
• (DE) Germany Oct PPI M/M: 0.3% v 0.3%e; Y/Y: 3.3% v 3.3%e
• (CH) Swiss Oct Trade Balance (CHF): 2.6B v 2.4B prior; Real Exports M/M: +6.3% v -2.1% prior; Real Imports M/M: +3.6 v -0.1% prior; Swiss Watch Exports Y/Y: +7.2% v -6.8% prior
• (ZA) South Africa Sept Leading Indicator: 104.7 v 104.6e
• (FI) Finland Oct Unemployment Rate: 6.3% v 6.3% prior
• (JP) Japan Oct Convenience Store Sales Y/Y: -1.5% v +3.5% prior
• (TW) Taiwan Oct Export Orders Y/Y: 5.1% v 3.9%e
• (TW) Taiwan Q3 Current Account Balance: $14.0B v $16.4B prior
• (HK) Hong Kong Oct CPI Composite Y/Y: 2.7% v 2.7%e - (IL) Israel Nov 12-month CPI Forecast: 1.1% v 1.1% prior
• (PL) Poland Oct Sold Industrial Output M/M: 9.9% v 9.1%e; Y/Y: 7.4% v 6.6%e; Construction Output Y/Y: 22.4% v 21.0%e
• (PL) Poland Oct PPI M/M: 0.5% v 0.4%e; Y/Y: 3.2% v 3.0%e

Fixed Income Issuance

• (IN) India sold total INR150B vs. INR150B indicated in 3-month, 6-month and 12-month bills
• (ZA) South Africa sold total ZAR2.85B vs. ZAR2.85B indicated in 2023, 2030 and 2044 bonds
• (ES) Spain Debt Agency (Tesoro) sold €2.9B vs. €2.5-3.5B indicated in 3-month and 9-month bills

Looking Ahead

• (NG) Nigeria Central Bank Interest Rate Decision; Expected to leave Interest Rates unchanged at 14.00%r5
• (AR) Argentina Oct Budget Balance (ARS): No est v -22.9B prior
• 05:30 (EU) ECB allotment in 7-Day Main Refinancing Tender (MRO)
• 05:30 (HU) Hungary Debt Agency (AKK) to sell in 3-month Bills
• 05:30 (UK) DMO to sell £500M in 0.125% Index-linked 2056 Gilts (UKTi)
• 06:00 (UK) Nov CBI Industrial Trends Total Orders: -5e v -6 prior; Selling Prices: No est v 10 prior
• 06:00 (IL) Israel Sept Manufacturing Production M/M: No est v 7.2% prior
• 06:00 (PT) Portugal Oct PPI M/M: No est v 0.3% prior; Y/Y: No est v 4.7% prior
• 06:00 (FI) Finland to sell €1.0B in 2023 and 2047 RFGB bonds
• 06:00 (TR) Turkey to sell Bonds
• 06:30 (EU) ESM to sell €2.0B in 6-month bills - 06:45 (US) Daily Libor Fixing
• 07:45 (US) Weekly Chain Store Sales
• 08:00 (HU) Hungary Central Bank (MNB) Interest Rate Decision: expected to leave Base Rate unchanged at 0.90% - 08:00 (RU) Russia Oct Unemployment Rate: 4.6%e v 4.5% prior; Real Wages Y/Y: 6.9%e v 7.2% prior; Real Disposable Income: -0.9%e v -1.5% prior
• 08:00 (RU) Russia Oct Real Retail Sales Y/Y: 2.4%e v 2.2% prior
• 08:00 (RU) Russia Oct PPI M/M: 1.7%e v 1.3% prior; Y/Y: 14.5%e v 14.4% prior
• 08:00 (RU) Russia announces weekly OFZ bond auction (held on Wed)
• 08:10 (UK) Baltic Dry Bulk Index
• 08:30 (US) Oct Housing Starts: 1.225Me v 1.201M prior; Building Permits: 1.260Me v 1.270M prior (revised 1.241K) - 08:55 (US) Weekly Redbook Retail Sales data
• 09:00 (BE) Belgium Nov Consumer Confidence Index: No est v 1 prior
• 09:00 (EU) Weekly ECB Forex Reserves
• 09:00 (HU) Hungary Central Bank Gov Matolcsy post rate decision statement
• 09:30 (NZ) Fonterra Global Dairy Trade Auction: Dairy Trade price index: No est v -2.0% prior
• 10:00 (DE) ECB's Weidmann (Germany) in Frankfurt
• 11:30 (EU) ECB's Nouy (SSM chief) in Brussels
• 11:30 (US) Treasury to sell 8-Week Bills
• 12:45 (CA) Bank of Canada (BOC) Wilkins speaks In Montreal
• 15:00 (MX) Mexico Citibanamex Survey of Economists
• 18:30 (AU) Australia Oct Westpac Leading Index M/M: No est v -0.1% prior
• 19:00 (AU) Australia Oct Skilled Vacancies M/M: No est v -0.6% prior
• 21:00 (NZ) New Zealand Oct Credit Card Spending M/M: No est v 0.8% prior; Y/Y: No est v 7.8% prior
• 20:30 (KR) South Korea Central Bank to sell KRW1.7T in 2-Year Bonds
• 22:00 (KR) South Korea Q3 Household Credit (KRW): No est v 1493.2T prior
• 22:00 (CN) China to sell s 1-year and 10-year government Bond
• 22:00 (TH) Thailand to sell THB18B in 2032 Bonds
• 22:30 (TH) Thailand Oct Customs Trade Balance: -$0.4Be v $0.5B prior; Exports Y/Y: +34.0%e v -5.2% prior; Imports Y/Y: 6.8%e v 9.9% prior
• 23:30 (JP) Japan Sept All Industry Activity Index M/M: -0.9%e v +0.5% prior

At the Treasury Committee BoE Inflation Report hearing, BoE Governor Mark Carney emphasized that a no-deal Brexit is "not a financial crisis round two" where central banks take center stage. Instead, " this is a real economy shock and therefore central banks have a role but we're more of a sideshow." He also added the real issues are going to be in the real economy. They'll be about "how well the logistics system works, where business confidence is, what access, if any, is there in a true, no-deal transition Brexit."

Carney acknowledged that "implied volatility in sterling is very high right now, much higher than it is for other major currencies" for "political discussions" with "importance" for the short to medium term outlook. And, "it will continue to be volatile for the next month at least".

Chief economic Andy Haldane said "notwithstanding the fact that details of the (Brexit) deal remain to be agreed, we are seeing somewhat greater impact on the behavior of companies in particular in the last month or two." And, "that could make for a somewhat weaker fourth quarter than we saw in the third quarter, and certainly a more volatile path for output I think over the next few months."

GBPUSD looks to extend corrective recovery strength having halted its recent weakness. Support is located at 1.2800 level. Further down, support comes in at the 1.2750 level where a break will turn focus to the 1.2700 level. Further down, support comes in at the 1.2650 level. Below here will set the stage for more weakness towards the 1.2600 level. On the upside, resistance stands at the 1.2900 with a turn above here allowing for additional strength to build up towards the 1.2950 level. Further out, resistance stands at the 1.3000 level followed by the 1.3050 level. On the whole, GBPUSD faces further downside pressure.

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.14129
Open: 1.14520
% chg. over the last day: +0.35
Day's range: 1.14423 – 1.14723
52 wk range: 1.1299 – 1.2557

EUR keeps showing a positive trend. During yesterday`s and today`s trading, the quotes grew by 50 points. The trading instrument is close to the monthly maximums. The local support and resistance levels are 1.14350 and 1.14750. The currency pair can grow further. You should open positions from the key levels.

At 15:30 the US will publish some important stats from the real estate market.

The indicators point toward the power of the buyers, the price fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone but below the signal line, which give a weak signal towards the purchase of EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment.

Trading recommendations

Support levels: 1.14350, 1.14000, 1.13650
Resistance levels: 1.14750, 1.15000

If the price fixes above 1.14750, expect further growth. Potentially towards 1.15000-1.15200.

Alternatively, the movement will correct toward 1.14200-1.14000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28440
Open: 1.28470
% chg. over the last day: +0.16
Day's range: 1.28330 – 1.28808
52 wk range: 1.2662 – 1.4378

GBP/USD keeps trading in flat. There is no single trend here. The support and resistance levels are 1.28250 and 1.28850. Financial market participants wait for new data regarding Brexit. Positions should be opened from the key levels.

You should keep an eye on the statements by the Head of the Bank of England.

The price is between both 50 MA and 200 MA, there are no precise signals.

The MACD histogram is around 0. There are no precise signals.

The Stochastic Oscillator is in near the neutral zone, the %K line is above the %D line, which provides a signal towards a purchase of GBP/USD.

Trading recommendations

Support levels: 1.28250, 1.27750, 1.27250
Resistance levels: 1.28850, 1.29500, 1.30300

If the price fixes above the support 1.28850, expect further correction of the quotes toward 1.29400-1.29600.

Alternatively, the quotes can fall towards the round 1.28000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31489
Open: 1.31693
% chg. over the last day: +0.19
Day's range: 1.31554 – 1.31772
52 wk range: 1.2248 – 1.3387

The technical picture on USD/CAD remains ambiguos. It keeps testing the support and resistance levels of 1.31500 and 1.31800. The quotes have a tendency to descend. Investors are waiting for the important reports from the US. Positions should be opened from the key levels.

The News Feed for Canada is calm.

The indicators provide no signals: 50 MA has crossed 200 MA.

The MACD histogram is around 0.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a bearish mood.

Trading recommendations

Support levels: 1.31500, 1.31200, 1.30900
Resistance levels: 1.31800, 1.32150, 1.32500

If the price fixes below 1.31150, consider selling USD/CAD. The movement will tend toward the round 1.31200-1.31000.

Alternatively, the currency pair can grow to 1.32000-1.32200.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.754
Open: 112.517
% chg. over the last day: -0.24
Day's range: 112.374 – 112.661
52 wk range: 104.56 – 114.74

USD/JPY is still dominated by the bearish sentiment. The trading instrument has updated the local minimums. At the moment the USD/JPY quotes are consolidating. Positions should be opened from the key levels 112.350 and 112.650. The currency pair has a tendency to descend further.

The news feed is calm for today.

The price is below 50 MA and 200 MA, which indicates the power of the sellers.

The MACD histogram is around in the negative zone and keeps descending, which indicates a bearish mood.

The Stochastic Oscillator is in the negative zone, the %K line is below the %D line. It is also a signal to sell USD/JPY.

Trading recommendations

Support levels: 112.250, 112.000
Resistance levels: 112.650, 112.900, 113.200

If the price fixes below the support 112.350, expect a further descend of the quotes. The movement will tend toward 112.000-111.750.

Alternatively, quotes can grow towards 112.650-112.900.

Talking about Italy, Eurogroup President Mario Centeno expressed his empathy and said "I understand and share Italy's concerns about sluggish growth and complex social issues". However, he also emphasized that "this can be achieved without placing a trajectory of fiscal consolidation at risk."

He also emphasized that adhering to fiscal rules is "not only in each country's individual interest, but also in our collective interest". He pointed to the Eurozone debt crisis and said it "has taught us that in an economic and monetary union, the responsibility to conduct sound and responsible policy does not stop at national borders."

Regarding the Franco-German proposal of Eurozone budget, he said "a common fiscal capacity should not discharge countries from their obligation to conduct sound fiscal policies and respect the fiscal rules." On the other hand, Eurozone statement would be better on reacting to asymmetric shocks, without overburdening the ECB.

Separately, ECB Governing council member Ewald Nowotny said Italy is not "an immediate threat" but rather a "political problem". However, "in the longer term there is the question of whether I have enough trust on the capital markets."

Equity markets are set for another down day, the tech sector has lost its mojo. Easy jet produced another smashing number but the stock may trade down. Cryptocurrencies under regulatory pressure.

U.S and European markets are poised to decline on Tuesday after weaknesses have been shown in some of the biggest technology companies. The tech wreck is on. The heavy hitters of the technology sectors, FANG stocks got hammered yesterday and most of them entered in a bear market territory. The S&P 500 is down nearly -8% from it’s peak. Companies like Nvidia stock is down more than 50% from their peak taking the title of the worst stock out of the tech sector.

One can always blame the current sell due to the ongoing trade war tensions between the U.S and China. But the fact is that investors need to re-adjust their gauges and expect small profits. The time for the low-interest environment and the element of quantitative easing program providing an extra push for the stock markets is over now. Now, it is more about sinking the reality, and realising that most of the factors that could have squeezed out any potential from the stock markets are limited.

As for the currency market, sterling is still vulnerable as Theresa May is battling against all obstacles while keeping hold of her position. It is more likely that Pound may remain volatile in the midst of this chaos.

The crypto king is being hit hard and it is under tremendous selling pressure. Bitcoin broke the 5000-mark yesterday for the first time, breaking another psychological level. The break of $6000 was bad as it is and now a violation of the 5000-mark is further evidence that bulls are not supporting the price. The next biggest support level is at $4,000. One can only pray that the price doesn’t violate this critical level because a break of this would open the floor towards the 3,000 level.

Fundamentally speaking, the current sell-off is once again triggered due to the regulatory pressure. The SEC reminded the crypto world that it has the final say over anything which smells like security. The department issued civil penalties against two cryptocurrency companies because they failed to register initial coin offerings as securities.

Easy Jet topped street expectations and produced full-year revenue of £5.90 billion ahead of estimates of £5.85 billion. The full-year dividend per share came in at 58.6p, this was also ahead of the estimates of 59.9p. What is more encouraging for Easy Jet is that it has improved it’s revenue per share to GBP 61.94. The firm still needs to improve it’s full-year cost per seat structure, currently, the cost per seat excluding fuel at constant currency is +4.8%. Having said this, the full year capacity has improved and it is sitting at 9.8%.

The fact is that the competition is extremely tough and the company’s competitor; Ryanair is leaving no stone unturned to sustain it’s No.1 place for being the low-cost airline. The challenge for these low-cost airlines is to stay away from the scenarios of strikes as they don’t only cause chaos for the passengers but they also leave a dent on the headline number. One area of interest for Easy Jet investors remains the acquisition of the troubled Italian airline, Alitalia.

Apple could see a bounce back, the price has made a lower low but the RSI hasn't.

Apple' stock is trading below its downward trend line (shown in orange) on a daily frame. This confirms that the downtrend is in play. The further confirmation of this argument comes from the fact that the price is trading below the 50,100 and 200 day moving averages (shown in pink, green and yellow colours).

Having said this, the price is close enough to its important support zone (shown by green horizontal line). The last time the price touched this level was back in June 2018.

The Relative strength index is trading near it's oversold zone and it is producing an important bull signal. By looking at the RSI, one can clearly see that while the price has made a lower low, the RSI hasn't done this and this confirms that the current sell-off may not last long.

The support zone is at $180.47.
The resistance zone is at $210.36.

The euro is starting to shed earlier gains against the US dollar, as Italian and German ten-year bond yield spreads continue to widen. Sellers need to move price below the 1.1390 support level to change the intraday sentiment surrounding the EURUSD pair to bearish. The 1.1470 level is now the key resistance level buyers need now need to break to reach the medium-term bullish target, of 1.1500.

The EURUSD pair is bullish while trading above the 1.1390 level, key resistance is now found at the 1.1470 and 1.1500 levels.

If the EURUSD pair trades below the 1.1390 level, key intraday support is found at the 1.1360 and 1.1330 levels.

The US dollar has continued to shed earlier monthly gains against the Japanese yen currency, as European equity market follow Asian bourses lower. The selling in the USDJPY pair has so far reached the 112.30 level, with price fast approaching the key 112.00 support level. If the 111.92 support level is clearly broken, the medium-term objective of sellers is likely to be the important October swing-low, at 111.37.

The USDJPY pair is strongly bearish while trading below the 112.39 level, key technical support is now found at the 111.92 and 111.37 levels.

If the USDJPY pair moves back above the 112.54 level, buyers may test the 112.79 and 113.00 resistance levels.

West Texas Intermediate (WTI) futures advanced slightly above the nine-month low of 54.80 after the sharp sell-off in the preceding week but is trading in a narrow range of 55.25 – 58.15. Prices are trading within the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, which are heading for a bullish crossover in the near future.

According to the technical indicators, the MACD oscillator is rising in the negative zone, while the RSI indicator is pointing down slightly below the 50 zone.

Should the price manage to strengthen its rebound on the multi-month low and surpass the 40-SMA, it could find resistance at the 58.15 barrier. Further improvement could drive oil prices until the 23.6% Fibonacci retracement level of the downleg from 76.90 to 54.80, around 60.00 before re-challenging the short-term falling trend line.

Alternatively, if the price continues to head lower the market could push the oil until the 55.25 support, before touching 54.80. More decreases could open the door for the 52.80 support, reached on September 2017.

Overall, WTI crude has been developing in a strong bearish tendency after the bounce off the 76.90 resistance, failing to post a significant upside retracement.