Sample Category Title

Pivot (invalidation): 1.3210

Our preference Long positions above 1.3210 with targets at 1.3265 & 1.3290 in extension.

Alternative scenario Below 1.3210 look for further downside with 1.3180 & 1.3155 as targets.

Comment The RSI lacks downward momentum.

Pivot (invalidation): 1.0090

Our preference Short positions below 1.0090 with targets at 1.0050 & 1.0030 in extension.

Alternative scenario Above 1.0090 look for further upside with 1.0110 & 1.0130 as targets.

Comment A break below 1.0050 would trigger a drop towards 1.0030.

Pivot (invalidation): 114.05

Our preference Short positions below 114.05 with targets at 113.70 & 113.55 in extension.

Alternative scenario Above 114.05 look for further upside with 114.20 & 114.40 as targets.

Comment The upward potential is likely to be limited by the resistance at 114.05.

Pivot (invalidation): 1.2950

Our preference Long positions above 1.2950 with targets at 1.3040 & 1.3080 in extension.

Alternative scenario Below 1.2950 look for further downside with 1.2890 & 1.2840 as targets.

Comment A support base at 1.2950 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 1.1275

Our preference Long positions above 1.1275 with targets at 1.1320 & 1.1340 in extension.

Alternative scenario Below 1.1275 look for further downside with 1.1250 & 1.1215 as targets.

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

XAUUSD (1202.64): Gold prices extended the declines as it slipped below 1204 level of support. However, with price action closing with a doji pattern, a bullish follow through here could confirm the near-term upside. The resistance level at 1223.50 is the first target that could be tested to the upside. Alternately, if gold prices extend the declines below 1204, then the declines could push the price of the precious metal down to 1185.70 level of support.

GBPUSD (1.2989): The GBPUSD currency pair managed to post a rebound after failing to touch down to 1.2808 level of support. The reversal saw price action filling the gap from Monday's open. Further continued momentum could push GBPUSD back to the upside to the previously held resistance area of 1.3132 - 1.3086. Failure to clear this resistance area could keep GBPUSD trading within the said levels

EURUSD (1.1290): The EURUSD closed with some modest gains on Tuesday, and the reversal comes following Monday's declines. However, price action is seen testing the previously breached support level at 1.1315 - 1.1300. Failure to clear this resistance could keep the EURUSD biased to the downside. The resistance area is seen also falling close to the 20-period EMA which could offer further resistance. The common currency will need to clear the falling trend line to confirm the upside.

The Euro currency was seen trading weaker with economic data and general sentiment turning negative.

The Euro slipped after comments from the ECB's chief economist Peter Praet who struck a dovish tone on monetary policy. Mr. Praet said that the ECB was open to all options including reviving its bond purchase program.

The ECB's chief economist said that significant monetary policy accommodation was still needed.

The ZEW economic expectations for Germany picked up slightly, but data showed that investors do not expect a strong recovery soon. The financial expectations advanced to -24.1 from -24.7 in October.

In the UK, the labor market data showed that wage growth rose 3.0% matching estimates. However, the UK's unemployment rate edged higher to 4.1% from 4.0%. The claimant count change also rose 20.2k.

Japan's preliminary GDP data for the third quarter released earlier today showed that the economy contracted 0.3% in the three months ending September 2018. This was weaker than the 0.7% surge witnessed in the second quarter. On an annualized basis, Japan's GDP was seen rising just 1.2%, down from 3.0% increase in the second quarter.

In Australia, the wage price index data for the third quarter was seen rising 0.6%. This was in line with estimates and slightly higher than the revised wage price index data for the second quarter which was 0.5%. The data comes ahead of tomorrow's monthly employment report.

The European trading session will see the release of the Q3 GDP report for Germany which is expected to show a 0.3% contraction in the economy. This is followed by French final inflation figures which are forecast to rise by 0.1% on the month.

The inflation report from the UK is forecast to show that consumer prices rose 2.5% on the year ending October 2018. This marks a slight acceleration from the previous month. Core CPI is forecast to rise 1.9%, marking the same pace of increase as the month before.

The Eurozone's third-quarter GDP report will be coming up later. Forecasts confirm that the Eurozone's GDP advanced 0.2% in the third quarter of the year.

The NY trading session is relatively quiet. Only the U.S. consumer price index data is due. Headline CPI is expected to rise 0.3% on the month, advancing from a 0.1% increase previously. Core CPI is expected to increase 0.2% from 0.1% previously.

EURGBP continues to underperform for the third week in a row, touching a 7-month low at 0.8655 on Tuesday, a mark well below the Ichimoku cloud and its moving averages. In the short-term the pair could lose more as the red Tenkan-sen line points steeply to the downside beneath the blue Kijun-sen line, while the MACD keeps strengthening under its red signal line in negative territory. Still, with the RSI fluctuating near the 30 oversold limit, upside corrections cannot be ruled out.

A reversal to the upside could see immediate resistance around 0.8722, the 78.2% Fibonacci of the upleg from 0.8919 to 0.9097 and a familiar support area. Slightly above the market may retest the previous peak of 0.8772 before the 61.8% Fibonacci of 0.8800 comes into view. Higher than that, the door could open for the 50% Fibonacci of 0.8857. Yet only a break above 0.8914, the upper surface of the Ichimoku cloud and the 38.2% Fibonacci, may confirm the start of an uptrend.

On the way down and below yesterday’s trough of 0.8655, bearish actions may attempt to bridge the 18-motth low of 0.8619 reached on April. Should declines extend even further, support could be found around 0.8570, while if that proves a weak obstacle too, then the focus may shift down to 0.8450, both having tried to stop downside and upside movements in the past.

In the medium-term picture, the bearish outlook has deteriorated in the three-month period as the bears managed to stretch the downfall off 0.9097 to fresh troughs yesterday. The 50-day simple moving average is set to post a bearish crossover with the 200-day MA, adding evidence that the downtrend is not near to its end.

To sum-up, EURGBP holds a negative bias both in the short and the medium-term picture.