Sample Category Title

Pivot (invalidation): 1.2955

Our preference Long positions above 1.2955 with targets at 1.3005 & 1.3030 in extension.

Alternative scenario Below 1.2955 look for further downside with 1.2925 & 1.2900 as targets.

Comment A support base at 1.2955 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 0.9860

Our preference Long positions above 0.9860 with targets at 0.9890 & 0.9910 in extension.

Alternative scenario Below 0.9860 look for further downside with 0.9845 & 0.9825 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 111.70

Our preference Long positions above 111.70 with targets at 112.25 & 112.50 in extension.

Alternative scenario Below 111.70 look for further downside with 111.50 & 111.30 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.3130

Our preference Long positions above 1.3130 with targets at 1.3165 & 1.3185 in extension.

Alternative scenario Below 1.3130 look for further downside with 1.3095 & 1.3065 as targets.

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

Pivot (invalidation): 1.1565

Our preference Long positions above 1.1565 with targets at 1.1595 & 1.1610 in extension.

Alternative scenario Below 1.1565 look for further downside with 1.1540 & 1.1515 as targets.

Comment A support base at 1.1565 has formed and has allowed for a temporary stabilisation.

The Euro tracks sterling and moved higher in early European session, after narrow range in Asia, with daily cloud top offering solid support (1.1569) and keeping the downside protected.

Conflicting daily techs send mixed signals, as break and close above daily cloud was positive signal, but plethora of daily MA’s marks strong barriers at 1.1607/27 zone and keeps the upside limited for now.

The action of British pound would likely affect Euro, with signals of continuation of recovery leg from 1.1432 seen on sustained break above MA’s barriers, while negative signal could be expected on return into daily cloud.

German / EU ZEW data are in focus today, with both indicators showing negative forecasts (German Oct -12.3 f/c vs -10.6 prev / EU -9.2 f/c vs -7.2 prev).

Releases at / below forecasted level could have negative impact on the single currency, which would soften near-term structure and re-expose the base of near-term congestion at 1.1535, reinforced by 10SMA.

Res: 1.1607, 1.1627, 1.1668, 1.1724
Sup: 1.1569, 1.1545, 1.1535, 1.1518

Cable remains constructive and pressures 1.3200 barrier, as fresh strength broke above previous day’s high at 1.3181 and also dented pivotal Fibo barrier at 1.3191 (Fibo 61.8% of 1.3257/1.3083 bear-leg) in early Tuesday’s trading.

The pair dipped to 1.3083 on Monday, following failure on Brexit talks during the weekend, but regained tractions and recovered previous losses.

Brexit talks remain pair’s main driver, with focus on EU summit which starts on Wednesday, when two sides will try to find way to continue talks which stalled on the Northern Ireland’s border issue.

The latest comments from top EU officials show willingness to continue talks and urging both sides to do their best, but warning that no-deal Brexit scenario is more likely than ever before and that the bloc must be ready for such scenario.

Daily techs are bullishly aligned and supportive (momentum is breaking into positive territory and daily MA’s turned to full bullish configuration) for further upside to fully retrace 1.3257/1.3083 pullback.

UK data are in focus today, with jobless claims forecasted lower in Sep (4.5k f/c vs 8.7K previous) and unemployment expected to stay unchanged at 4.0% in Aug.

UK earnings data will be closely watched for fresh signals. Forecast for Aug is unchanged at 2.6%, with better than expected result to inflate pound for 1.32+ gains, while weaker than expected figure could put sterling under pressure.

Res: 1.3200, 1.3217, 1.3257, 1.3297
Sup: 1.3181, 1.3139, 1.3120, 1.3096

XAUUSD (1226.09): Gold prices rallied to fresh highs on Mondays before quickly giving up the gains. The retracement could, however, push the price of the precious metal lower. The initial support at 1212.05 - 1207.00 could be tested in the near term if gold prices pullback further. However, the upside bias remains for the moment following the breakout from the ascending triangle pattern. If gold prices fail to post a rebound, we anticipate a flat range to be maintained once again.

GBPUSD (1.3144): The GBPUSD currency pair managed to recover off the opening lows on Monday. Price action rebound to fill the gap rather quickly before consolidating. We expect that the cable could move lower if the temporary support at 1.3132 fails to hold the current declines. The downside momentum could push the GBPUSD lower toward the familiar support of 1.3054 - 1.3028 region. As long as the support here holds, we maintain the upside bias. A close below the support could send the GBPUSD down to 1.2808.

EURUSD (1.1574): The Euro currency posted gains on Monday as price action managed to rebound off the support. However, price action managed to post a lower high, resulting in a near double top pattern. The common currency could be seen testing the lower support at 1.1547. A break down below this support could signal further declines and in turn, validate the double top pattern. The minimum downside we expect to see is for the EURUSD to touch 1.1500 level. Alternately, to the upside, a close above 1.1604 could trigger further gains.