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Price increased a little and retests the 148.46 static resistance. GBP/JPY is somehow expected to drop further on the short term after the failure to stay above the 250% Fibonacci line (ascending dotted line). The next downside target will be at the WL1of the ascending pitchfork.

Price increased and tries to resume the yesterday's minor bullish candle. GBP/USD is approaching the 1.3183 yesterday's high. GBP/USD is almost to reach the outside sliding line (SL) of the major descending pitchfork. A breakout followed by a retest will confirm a further increase. Looks like that we had a false breakdown below the 250% Fibonacci line (ascending dotted line) and below the median line (ml) of the minor descending pitchfork.

A USDX's drop somewhere below the 93.30 level will confirm a further drop in the upcoming period and a USD depreciation. USDX could come down only to retest a support level before will climb higher again, is still expected to reach new highs as the FED is expected to hike the rate in December. I've said in the previous week that the USDX could develop an Inverse Head and Shoulders pattern, a retest of the 92.49 will signal that the pattern is developing, but only a valid breakout above the 93.81 will confirm it.

Price has managed to jump above the median line (ml) of the descending pitchfork and could approach the median line (ml) of the minor ascending pitchfork. EUR/USD should increase further after the failure to close below the 1.1712 horizontal support and after the failure to reach and retest the median line (ML) of the major ascending pitchfork. The pair could still develop a Head and Shoulders pattern if will stay within the descending pitchfork's body. A further increase will be confirmed only after a valid breakout above the 1.2041 major resistance

The EUR/USD increased in the morning and resumes in the last two day's bullish movement. Price rallies and tries to take out a dynamic resistance as the USD is punished by the USDX's drop. The index is at the third decreasing day and is pressuring an important dynamic support.

A USDX's drop somewhere below the 93.30 level will confirm a further drop in the upcoming period and a USD depreciation. USDX could come down only to retest a support level before will climb higher again, is still expected to reach new highs as the FED is expected to hike the rate in December. I've said in the previous week that the USDX could develop an Inverse Head and Shoulders pattern, a retest of the 92.49 will signal that the pattern is developing, but only a valid breakout above the 93.81 will confirm it.

Price has managed to jump above the median line (ml) of the descending pitchfork and could approach the median line (ml) of the minor ascending pitchfork. EUR/USD should increase further after the failure to close below the 1.1712 horizontal support and after the failure to reach and retest the median line (ML) of the major ascending pitchfork. The pair could still develop a Head and Shoulders pattern if will stay within the descending pitchfork's body. A further increase will be confirmed only after a valid breakout above the 1.2041 major resistance

EUR/USD - 1.1770

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.1765

Kijun-Sen level                  : 1.1754

Ichimoku cloud top             : 1.1724

Ichimoku cloud bottom      : 1.1723

Original strategy  :

Buy at 1.1690, Target: 1.1790, Stop: 1.1655

Position : -

Target :  -

Stop : -

New strategy  :

Buy at 1.1720, Target: 1.1820, Stop: 1.1685

Position : -

Target :  -

Stop : -

As the single currency surged again after brief pullback to 1.1719, adding credence to our view that a temporary low has possibly been formed at 1.1669 last week and consolidation with upside bias remains, a firm break above indicated resistance at 1.1788-89 would bring retracement of recent decline to 1.1800 and later towards resistance at 1.1832 which is likely to hold from here due to near term overbought condition.

In view of this, we are still looking to buy euro on dips as 1.1719 support should limit downside and bring another rebound. Only break of strong support at 1.1662-69 would signal recent decline is still in progress and may extend weakness towards 1.1625-30 but reckon 1.1600 would hold.

Daily Pivots: (S1) 131.93; (P) 132.21; (R1) 132.58; More...

Intraday bias in EUR/JPY remains neutral for the moment. Near term outlook remains bullish as long as 131.69 holds. Sustained break of 134.20 fibonacci level will extend larger up trend to 141.04 resistance next. However, break of 131.69 will be an early sign of medium term reversal and will target 127.55 key support level instead.

In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). 61.8% retracement of 149.76 to 109.03 at 134.20 is already met. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. However, break of 127.55 support will argue that the medium term trend has reversal and will turn outlook bearish for deeper fall.

Daily Pivots: (S1) 1.5098; (P) 1.5123; (R1) 1.5166; More....

At this point, EUR/AUD is still bounded in range of 1.4791/5173. Intraday bias remains neutral first. On the upside, break of 1.5173/5226 resistance zone will finally resume larger rise from 1.3624. In that case, EUR/AUD will target 1.5644 resistance first. On the downside, break of 1.4791 support will turn bias to the downside and extend the fall from 1.5173 to retest 1.4421 support.

In the bigger picture, we're holding on to the view that corrective decline from 1.6587 medium term top has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. The corrective structure of the price actions from 1.5226 is affirming this view. Above 1.5226 will target a test on 1.6587 key resistance. However, break of 1.4421 support will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.

USD/JPY - 112.57

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 112.67

Kijun-Sen level                  : 112.67

Ichimoku cloud top             : 112.88

Ichimoku cloud bottom      : 112.69

Original strategy  :

Sell at 113.10, Target: 112.10, Stop: 113.45

Position :  -

Target :  -

Stop : -

New strategy  :

Sell at 113.10, Target: 112.10, Stop: 113.45

Position :  -

Target :  -

Stop : -

Although the greenback recovered after finding support at 112.32 again and consolidation with initial mild upside bias is seen, if our view that top has been made at 113.44 last week is correct, upside would be limited to 113.10-20 and bring retreat later, below said support at 112.32 would add credence to this view and bring test of support at 112.21, break there would bring retracement of early upmove to 112.00, then 111.75-80 but previous support at 111.47 should remain intact.

In view of this, we are looking to sell dollar on recovery as resistance area at 113.20-26 should cap upside and bring another decline to aforesaid downside targets. Only break of said resistance at 113.44 would abort and signal recent upmove is still in progress for further gain to 113.75-80 and possibly towards 114.00-10 which is likely to hold from here, bring correction later. 

Daily Pivots: (S1) 0.8901; (P) 0.8938; (R1) 0.8970; More...

A temporary top is in place at 0.8849 in EUR/GBP and intraday bias is turned neutral first. Another rise will be mildly in favor as long as 0.8849 minor support holds. Above 0.8991 will target 61.8% retracement of 0.9305 to 0.8745 at 0.9091. Break there will target a retest on 0.9305 high. However, break of 0.8849 will suggests that rebound form 0.8745 has completed. And, intraday bias will be flipped back to the downside to extend the fall fro 0.9305.

In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of another fall. And in that case, EUR/GBP could have a retest on 0.9303 low. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.

Daily Pivots: (S1) 1.1471; (P) 1.1494; (R1) 1.1524; More....

EUR/CHF's recovery from 1.1387 resumed and intraday bias is mildly on the upside for further rise. Still, break of 1.1622 is needed to confirm up trend resumption. Otherwise, the consolidation from should continue with risk of at least another fall. Below 1.1450 will turn bias to the downside for 1.1387 and below. Strong support in expect at 1.1257 cluster support (38.2% retracement of 1.0652 to 1.1622 at 1.1251) to contain downside and bring rebound.

In the bigger picture, long term rise from SNB spike low back in 2015 is still in progress. EUR/CHF should now be heading back to prior SNB imposed floor at 1.2000. For now, this will be the favored case as long as 1.1198 resistance turned support holds.

XAUUSD (1287.02): Gold prices have likely completed the downside decline after price posted a strong reversal after testing the 1262.80 support level. The subsequent rally from this support pushed gold prices to close above the immediate resistance of 1275 - 1273 and also breaking past the falling trend line. Further gains could see gold prices rising towards the 1290 handle. However, establishing support near 1275 - 1273 could validate the bullish bias.