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Daily Pivots: (S1) 0.8753; (P) 0.8781; (R1) 0.8799; More...

EUR/GBP is staying in consolidation from 0.8722 and intraday bias stays neutral for the moment. With 0.8847 support turned resistance intact, further fall is expected. On the downside, break of 0.8772 will target 0.8620 low first. Decisive break there will resume whole down trend from 0.9304. In that case, next target will be 100% projection of 0.9305 to 0.8620 from 0.9097 at 0.8412.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Current development suggests that fall from 0.9303, as a down leg in the pattern, is still in progress. But in case of deeper fall, downside should be contained by 0.8116 cluster support, 50% retracement of 0.6935 (2015 low) to 0.9304 at 0.8120, to bring rebound.

IBEX short-term Elliott wave view suggests that a rally to 9668.31 high ended intermediate wave (X) bounce. Down from there, the index made a declined in 5 waves impulse structure. And ended Minor wave A of a zigzag structure at 8850.20 low. Where the lesser degree Minute wave ((i)) ended at 9471.20 low. Up from there, a bounce to 9542.80 high ended Minute wave ((ii)) as a Flat structure. Below from there, a decline to 8971.30 low ended extended Minute wave ((iii) in lesser degree 5 waves. A bounce to 9120.80 high ended Minute wave ((iv)). Finally, a decline to 8850.20 low ended Minute wave ((v)) & also completed the Minor wave A.

Currently, index is doing a Minor wave B bounce to correct the cycle from 9668.31 high in 3, 7 or 11 swings before decline resume. Where initial bounce to 9139.60 high ended Minute wave ((a)) of a possible zigzag correction and Minute wave ((b)) ended at 8967.20 low. Near-term focus remains towards 9256.55-9435.80 100%-161.8% Fibonacci extension area to end the Minute wave ((c)) of B. Afterwards, the index is expected to resume lower in Minor wave C of (Y) or should react lower in 3 swings at least. We don’t like buying it as the right side stamp is lower & calling more downside against 9668.31 high.

IBEX 1 Hour Elliott Wave Chart

Daily Pivots: (S1) 1.6148; (P) 1.6188; (R1) 1.6218; More....

EUR/AUD's break of 1.6145 minor support suggests that rebound from 1.5984 has completed at 1.6357 already. Intraday bias is turned to the downside for 1.5984. For now, we're still viewing price actions from 1.6353 as a consolidation pattern. Thus, downside should be continued by 1.5984 to bring up trend resumption eventually. On the upside, above 1.6226 minor resistance will turn bias back to the upside for retesting 1.6357 first.

In the bigger picture, up trend from 1.3624 (2017 low) is still in progress. Further rise should be seen to retest 1.6587 (2015 high). Decisive break there will resume the long term rally and target 1.7488 fibonacci level. On the downside, break of 1.5984 support is need to be the first sign of medium term reversal. Otherwise, outlook will remain bullish in case of deep pull back. However, sustained break of 1.5984 will be an early sign of trend reversal.

For the 24 hours to 23:00 GMT, the EUR declined 0.66% against the USD and closed at 1.1500.

Macroeconomic data showed that the Euro-zone's final consumer price index (CPI) increased 2.1% on yearly basis in September, in line with market expectations. The CPI had climbed 2.0% in the previous month, while the preliminary figures had indicated an advance of 2.0%. On the other hand, the region's seasonally adjusted construction output eased of 0.5% on a monthly basis in August, after a revised decline of 0.1% in the prior month.

In the US, data revealed that the US building permits unexpectedly dropped 0.6%, on a monthly basis, to an annual rate of 1241.0K, defying market expectations for a rise to a level of 1257.0K. In the preceding month, the building permits recorded a revised level of 1249.0K. Moreover, the nation's housing starts slid 5.3%, on a monthly basis, to an annual rate of 1201.0K in September, reflecting damages due to the Hurricane Florence. Market participants had envisaged the housing starts to record a reading of 1210.0K, while housing starts had registered a revised level of 1268.0K in the prior month.

The minutes of the Federal Reserve's Open Market Committee September meeting showed that policymakers expressed confidence over the further gradual interest rate hikes and unanimously agreed to maintain the interest rate between 2% and 2.25%. Furthermore, the committee continued to remain consistent for the further prospects of a fourth 2018 hike in December as the members had anticipated a further gradual increase in the target range for the federal funds rate.

In the Asian session, at GMT0300, the pair is trading at 1.1500, with the EUR trading flat against the USD from yesterday's close.

The pair is expected to find support at 1.1470, and a fall through could take it to the next support level of 1.1440. The pair is expected to find its first resistance at 1.1554, and a rise through could take it to the next resistance level of 1.1608.

Amid lack of macroeconomic releases in the Euro-zone today, traders look forward to the US initial jobless claims followed by Philadelphia fed business outlook for October and leading index for September, slated to release later in the day.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP declined 0.67% against the USD and closed at 1.3100.

On the macro front, UK's consumer price index (CPI) rose 2.4% on an annual basis in September, falling short of market expectations for a gain of 2.6%. In the previous month, the CPI had advanced 2.7%. Additionally, Britain's retail price index unexpectedly fell 3.3% on a yearly basis in September, defying market consensus for an unchanged reading. The index had climbed 3.5% in the prior month.

On the contrary, the nation's house price index jumped 3.2% on an annual basis in August, more than market anticipation for a climb of 2.8%. The index had recorded a revised rise of 3.4% in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3099, with the GBP trading a tad lower against the USD from yesterday's close.

The pair is expected to find support at 1.3061, and a fall through could take it to the next support level of 1.3024. The pair is expected to find its first resistance at 1.3163, and a rise through could take it to the next resistance level of 1.3228.

Looking forward, investors await UK's retail sales data for September, set to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.31% against the JPY and closed at 112.63.

In the Asian session, at GMT0300, the pair is trading at 112.52, with the USD trading 0.10% lower against the JPY from yesterday’s close.

Overnight data showed that Japan’s adjusted merchandise trade deficit widened to ¥238.9 billion in September, expanding for the third consecutive month. In the preceding month, the nation posted a deficit of ¥190.4 billion. Market participants had expected the trade deficit to rise to ¥333.4 billion.

The pair is expected to find support at 112.12, and a fall through could take it to the next support level of 111.71. The pair is expected to find its first resistance at 112.83, and a rise through could take it to the next resistance level of 113.13.

Trading trend in the Japanese Yen today is expected to be determined by Japan’s National consumer price index for September, set to release overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.53% against the CHF and closed at 0.9953.

In the Asian session, at GMT0300, the pair is trading at 0.9947, with the USD trading 0.06% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9914, and a fall through could take it to the next support level of 0.9882. The pair is expected to find its first resistance at 0.9968, and a rise through could take it to the next resistance level of 0.9990.

Moving forward, traders would closely monitor Switzerland trade balance data for September, set to release in a while.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 1.1429; (P) 1.1456; (R1) 1.1474; More...

Intraday bias in EUR/CHF remains neutral for consolidation below 1.1491 temporary top. Another rise is expected with 1.1368 minor support intact. We're holding on to the view on bullish trend reversal after EUR/CHF drew support from 1.1154/98 zone. On the upside, above 1.1491 will target 1.1713 resistance for confirmation. Break there will target a test on 1.2004 high next. Meanwhile, note that upside momentum is not to convincing so far. Break of 1.1368 minor support will argue that the rebound has completed and turn bias back to the downside for 1.1154/98 zone again.

In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1234) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.

For the 24 hours to 23:00 GMT, the USD rose 0.69% against the CAD and closed at 1.3024.

Data indicated that Canada's manufacturing shipments retreated 0.4% on a monthly basis in August, lower than market expectations for a drop of 0.6%. In the previous month, manufacturing shipments had advanced by a revised 1.20%.

In the Asian session, at GMT0300, the pair is trading at 1.3039, with the USD trading 0.12% higher against the CAD from yesterday's close.

The pair is expected to find support at 1.2972, and a fall through could take it to the next support level of 1.2905. The pair is expected to find its first resistance at 1.3076, and a rise through could take it to the next resistance level of 1.3113.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the AUD declined 0.46% against the USD and closed at 0.7109.

LME Copper prices rose 0.8% or $47.0/MT to $6249.0/MT. Aluminium prices declined 0.2% or $4.0/MT to $2018.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7135, with the AUD trading 0.37% higher against the USD from yesterday's close.

Overnight data indicated that Australia's seasonally adjusted unemployment rate surprisingly dropped to 5.0% in September, compared to a rate of 5.3% in the prior month. Market had anticipated for unemployment rate to record a flat reading. Meanwhile, the nation's NAB business confidence eased to a level of 3.0 in Q3 2018, compared to a reading of 7.0 in the prior quarter.

The pair is expected to find support at 0.7107, and a fall through could take it to the next support level of 0.7078. The pair is expected to find its first resistance at 0.7162, and a rise through could take it to the next resistance level of 0.7188.

With no macroeconomic releases in Australia today, investors look forward to global macroeconomic events for further directions.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.