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EURJPY paused the downtrend from 134.40 and is making a recovery after a brief dip below 132. Immediate downside pressure has eased but the pair is still at risk for further downside as prices are still within the Ichimoku cloud on the 4-hour chart.

With RSI turning back up, there is room for more upside ahead of round figure resistance at 133. This is close to the top of the cloud and also where the Kijun-sen line currently lies. But only a move above 133.90 would indicate that downside pressure has ended. From this level, EURJPY would re-test the 134.40 peak and then resume the uptrend that started from 129.36 with scope to reach the 135-handle.

If support at 133 fails to hold, then prices would target 131.60 (previous support from early September). Below this, the market would see more weakness and consequently the key psychological level at 130 comes into view as further support ahead of the 129.36 low.

It remains to be seen whether the market is carving out a lower top right now and if the current bounce off 132 is just a corrective move of what could be the start of a new downtrend from 134.40. The odds of another leg lower are still high since short-term momentum oscillators are in bearish territory (both RSI and MACD) and there was a bearish cross of the Tenkan-sen line below the Kijun-sen line on the 4-hour chart.

The Dollar made its presence known across the currency markets on Tuesday, after hawkish comments from Federal Reserve Chairwoman Janet Yellen, bolstered expectations of another US rate hike in 2017.

Investors who were anticipating higher US interest rates, cheered after Yellen stated it would be "imprudent" to keep monetary policy on hold until inflation is back to 2%. Yellen also said that she thinks depressed inflation, witnessed in the States this year, is "probably temporary and will likely reach the central bank's golden 2% target over the next few years". With hawkish statements from various Fed policy-makers giving the thumbs up to higher US rates, the Greenback has regained some of its mojo. Dollar bulls are making an appearance, and with the Fed fund futures showing an 83% probability that they will raise rates in December, a further upside is on the cards.

It is remarkable how swiftly the Greenback has returned to favour this week, but it underscores how sensitive the currency has become to monetary policy speculation.

From a technical standpoint, the Dollar Index bounced back to life on the daily timeframe, with bulls steamrolling through the 93.00 resistance level on Wednesday. A breakout above 93.50 may open the gates to 94.00.

Trump's tax plan back in focus

A sense of anticipation can be felt across the financial markets ahead of President Trump's tax proposal in Indiana later today. Although some information has been leaked that corporate tax may be lowered to 20% from 35%, market players are still likely to closely scrutinise the speech for further details on tax reforms. If legislation is passed this year, this should boost sentiment towards the US economy and support the Dollar further.

Currency spotlight - EURUSD

The mighty Euro extended losses against the Greenback during Wednesday's trading session, as sellers exploited the political uncertainty in Europe and the dollar staged a comeback. With the Dollar roaring back to life amid rising rate hike expectations and political uncertainty in Europe pressuring the Euro, could the EURUSD bears make a return in Q4? Prices are currently trading below 1.1750 as of writing, with the downside momentum likely to encourage sellers to target the 1.1680 support.

From a technical standpoint, the bullish trend on the daily charts was invalidated when prices breached and closed below the 1.18320 higher low. Sustained weakness under 1.1680 should open a path towards 1.1500.

Commodity spotlight - Gold

Sellers were given the green light to send Gold prices lower on Tuesday, following Yellen's hawkish comments at Cleveland. With expectations mounting over the Federal Reserve raising US interest rates in December, Gold, which is zero-yielding, is likely to come under renewed selling pressure. Bears remain in control below $1300, with further downside expected as the Dollar continues to appreciate. From a technical standpoint, the yellow metal is coming under increasing selling pressure on the daily and weekly charts. Previous support at $1300 may transform into a dynamic resistance level, and may encourage a decline towards $1280.

NZDUSD Elliott Wave 1 Hour Chart 09.14.2017

Back then we were pointing out that NZDUSD has ended cycle from the 07/27 peak at 0.7128 low. Consequently we're expecting larger bounce to happen. NZDUSD is currently short term pull back agianst the 0.7128 low in wave ((x)) black.Proposed pull back is showing incomplete structure, suggesting another marginal push lower toward 0.7193-0.71628 area, where buyers will be waiting for further rally ideally.

Although we expected the rally, we didn't force trades at that stage because the price structure didn't have incomplete bullish sequences that will justify the risk.

NZDUSD Elliott Wave 1 Hour Chart 09.18.2017

Shortlly after, the price has reached proposed technical area at 0.7193-0.71628 . NZDUSD has found buyers there and we got the nice rally. A few days after, the price has broken above 09/08 peak, making incomplete bullish sequences in the cycle from the 0.71283 low. As we can see at the chart below, we have now 5 swings to the upside, when currently doing 6th swing. As far as pivot at 0.7181 low remians intact we expect the pair to find the buyers for further rally in 7th swing. Due to incomplete bullish sequences, we recommended members to buy the intraday dips in 3,7,11 swings against the 0.71815 low. Until pull back gives us clear 3 wave structure, we have 50-61.8 fibonacci retracement area as a potential buying zone : 0.7262-0.7243.

NZDUSD Elliott Wave 1 Hour Chart 09.19.2017

We got proposed pull back (x) and it has reached 50 fibonacci level as expected. It has unfolded as a clear 3 wave abc pattern, when buying area was at 0.7260-0.7247. It's already giving us reaction from there. We would like to see more separation from the current short term low, to get confimration that (x) blue has ended. We expect the pair to trade higher and like staying long, targeting 0.73921-0.74417 area.

NZDUSD Elliott Wave 1 Hour Chart 09.20.2017

The pair is trading higher as expected, and members are enjoying profits in risk free trades. Next important technical area to the upside comes at 0.73921-0.74417 and it's expected to be reached before cycle from the 0.7128 low completes as 7 swings structure. Mentioned area should find sellers , and we expect to see larger pull back from those levels.

We advised members to take profits there.

The GBP/USD has rejected perfectly from 1.3440 as seen in my Session Recap webinar analysis of the German election impact and made a U-turn continuing with a bearish progressive channel zigzag. 1.3435-55 is the first POC zone (D L1,W L3 order block 38.2) and 1.3470-85 is the POC2 (D H3, EMA89, 50.0). Both zones could reject the price towards 1.3400 and 1.3379. Break of daily low at 1.3363 could move the price to 1.3353 and below we might expect a breakout towards the 1.3318-00 zone.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 - Daily Camarilla Pivot (Daily Support)

D L4 - Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

Spot Gold stands at the back foot on Wednesday and hit new one-month low at $1285 in extension of Tuesday's strong fall (the biggest one-day loss since July 3), which generated negative signal on formation of Bearish Engulfing pattern.

Today's weakness cracked rising 55SMA support at $1287 and eyes next targets at $1281 (50% retracement of $1204/$1357 ascend) and more significant daily cloud top at $1276.

Bearish techs show further room at the downside for extension of bear-leg from $1357 (08 Sep peak).

Session high at $1296 and psychological $1300 barrier marks initial resistances, with extended upticks expected stay capped under falling 10SMA at $1304.

Res: 1296; 1300; 1304; 1310
Sup: 1285; 1281; 1276; 1270

Gold: The commodity closed lower after reversing its Monday gains on Tuesday. This saw it following through lower during early trading on Wednesday. On the downside, support comes in at the 1,280.00 level where a break will turn attention to the 1,270.00 level. Further down, a cut through here will open the door for a move lower towards the 1,260.00 level. Below here if seen could trigger further downside pressure targeting the 1,250.00 level. Conversely, resistance resides at the 1,300.00 level where a break will aim at the 1,310.00 level. A turn above there will expose the 1,320.00 level. Further out, resistance stands at the 1,330.00 level. All in all, GOLD looks to weaken further on bear pressure.

Daily Pivots: (S1) 1.1745; (P) 1.1803 (R1) 1.1850; More...

Intraday bias in EUR/USD remains on the downside as correction from 1.2091 extends. Deeper decline should be seen as 1.1661 first. Such decline is correcting whole rise from 1.0569. Break of 1.1661 will target 38.2% retracement of 1.0569 to 1.2091 at 1.1510, where we're expecting support to bring rebound. On the upside, above 1.1837 minor resistance will turn intraday bias neutral first. But break of 1.2029 resistance is needed to confirm completion of the pull back. Otherwise, deeper fall will remain in favor as the correction develops.

In the bigger picture, rise from medium term bottom at 1.0339 is still in progress for 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. However, it should be noted that there is no confirmation of trend reversal yet. That is, such rebound from 1.0399 could be a correction. And the long term fall from 1.6039 (2008 high) could resume. Hence, we'd be cautious on strong resistance from 1.2516 to limit upside. But after all, break of 1.1661 is needed to indicate medium term topping. Otherwise, outlook will remain bullish in case of pull back.

Daily Pivots: (S1) 1.3406; (P) 1.3460; (R1) 1.3511; More....

GBP/USD dips lower today as pull back from 1.3651 extends. But there is no change in the bullish outlook. We'd continue to expect strong support from 38.2% retracement of 1.2773 to 1.3651 at 1.3316 to contain downside and bring rally resumption. Break of 1.3651 will turn bias back to the upside for 1.3835 support turned resistance next. Break there will target 55 month EMA (now at 1.4405).

In the bigger picture, current development argues that the long term trend in GBP/USD has reversed. That is, a key bottom was formed back in 1.1946 on bullish convergence condition in monthly MACD. Current rise from 1.1946 will target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466 next. In any case, medium term outlook will now stay bullish as long as 1.2773 support holds.

USD/CHF - 0.9754

Original strategy :

Bought at 0.9685, Target: 0.9785, Stop: 0.9695

Position : - Long at 0.9685

Target :  - 0.9785

Stop : - 0.9695

New strategy  :

Hold long entered at 0.9685, Target: 0.9785, Stop: 0.9710

Position : - Long at 0.9685

Target :  - 0.9785

Stop : - 0.9710

As the greenback did find renewed buying interest at 0.9681 (we recommended to buy at 0.9685 and a long position was entered) and has rallied in line with our bullish expectation, retaining our upside bias for recent upmove from 0.9421 low to to extend gain to 0.9773 resistance, however, break of this level is needed to bring further rise towards 0.9800-10 which is likely to hold from here due to near term overbought condition.

In view of this, we are holding on to our long position entered at 0.9685. Only below said support at 0.9681 would abort and signal top is formed instead, bring correction of recent rise towards support at 0.9642 which is likely to hold on first testing.

Daily Pivots: (S1) 0.9649; (P) 0.9688; (R1) 0.9723; More....

Focus on USD/CHF is now back on 0.9772 key resistance. Decisive break there will suggest that whole down trend form 1.0342 has completed. In that case, near term outlook will be turned bullish for 0.9860/1.0099 resistance zone. Nonetheless, with 0.9772 resistance intact, outlook remains bearish. Below 0.9587 minor support will turn bias back to the downside for retesting 0.9420 low.

In the bigger picture, focus remains on whether 0.9443 key support (2016 low) could be taken out firmly as down trend from 1.0342 extends. There are various interpretation of the price actions. But in any case, medium term outlook will stay bearish as long as 0.9772 resistance holds. Current down trend could extend to 38.2% retracement of 0.7065 (2011 low) to 1.0342 (2016 high) at 0.9090. However, break of 0.9772 will indicate that USD/CHF has successfully defended 0.9443 again and turn outlook bullish for 1.0099 resistance.