The EURUSD remained well bid above the 1.10 handle in Asia. Selling pressures on the pair ease as the US dollar pares gains. The trend remains negative below 1.1086 (major 38.2% retracement on Sep 30th to Oct 13th fall), for a potential extension of losses to 1.0951 (Jul 24th low) and 1.0910 (Jun 23rd low). Above 1.1096, the short-term bullish reversal could encourage a further rise to 1.1148 (major 61.8% retrace) and 1.1187 (minor 76.4% retrace).
The positive momentum in the USDJPY could encourage a last push toward 105.00, max 105.50, before the appetite in USD is further compromised. The short-term bias remains positive above the 102.89 level (major 38.2% retracement on Sep 27th to Oct 13th). Intermediate support is eyed at 103.55 (minor 23.6% retrace).
The appetite in the GBPUSD remains limited given the heavy negative bias due to political risks. The short-term resistance is eyed at 1.2295 (major 38.2% retracement on Sep 29th to Oct 7th crash), if surpassed, could bring along a further recovery to 1.2440 (Fibonacci 50% level). Stops are eyed below 1.20.
The AUDUSD rebounded past 0.7582 resistance (major 50% level on Sep 15th to Sep 29th rise), following the failure to clear the 0.7515 support (minor 76.4% retrace on Sep 15th to Sep 29th rise). The fading US dollar appetite suggests a potential extension of the recovery to 0.7612 (major 38.2% retrace) before 0.7710/0.7730 mid-term resistance. Short-term supports are eyed at 0.7551 (major 61.8% retrace) before 0.7455 (Sep 15th low), mid-term support.’
Gold is better bid as the USD appetite eases, nevertheless the hawkish Fed expectations are expected to cap the upside pre-200-day moving average ($1275). Support is eyed at $1250 (major 38.2% retracement on Dec 16th to Jun 5th rise). Only a successful recovery attempt above $1275, could encourage a rise to $1297 (minor 23.6% retrace).
WTI found solid bids below the $50 level. Combined to a softer US dollar, the bias remains positive for a resurge toward the $53/$55 mid-term resistance. The next critical support is eyed at $50.15 (minor 23.6% retrace on Sep 20th to Oct 10th rise), and $48.92 (major 38.2% retracement on Sep 20th to Oct 10th rise), which should distinguish between a recovery and a short-term bearish reversal.