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GBP rebounds 1.15% after sharp fall
The EURUSD is steadily moving toward the 1.1000 handle on the back of a solid USD appetite. The Federal Reserve (Fed) meeting minutes due today should distinguish between a slide below 1.10, and a rebound off this level. The negative bias should remain below the 1.1115 (major 38.2% retracement on Sep 30th to Oct 12th decline). Intermediate resistance is eyed at 1.1083 (minor 23.6%).

The USDJPY traders remain seller-at-dip above the critical 102.60 level (major 38.2% retracement on Sep 27th to Oct 6th & 200-hour moving average). The developing positive trend, sustained by higher US yields and stronger US dollar, should encourage an attempt to 104.20 before 104.50/105.00. Breaking below the 102.60, we could see a deeper correction to 102.12 (major 50%).

The GBPUSD rebounded 1.15% in Asia after falling another leg down to 1.2088 on no news, suggesting that the market remains heavily short-GBP on the back of the rising Brexit concerns. The oversold conditions on daily basis should encourage a minor recovery, yet the 1.2295 (major 38.2% retracement on Sep 29th to Oct 7th crash) should be cleared to send Cable to the bullish consolidation zone for a solid recovery to 1.2402 / 1.2440 (100-hour moving average / Fibonacci 50% level) before 1.2585 / 1.2618 (major 61.8% retrace / 200-hour moving average).

The AUDUSD rebounded from 0.7530, the downtrend channel’s base building since Sep 29th. We turn neutral and watch the critical 0.7619/0.7612 resistance (200-hour moving average / major 38.2% retracement on Sep 15th to Sep 29th rise), which should distinguish between a short-term bullish for a re-test of 0.7650 / 0.7710 area (minor 23.6% retrace / Sep 29th high) and a further drop to 0.7515 (minor 76.4% retrace) before 0.7455 (Sep 15th low), mid-term support.

Gold remains little changed. The 200-day moving average ($1274) remains the major mid-term resistance as traders disinvest along with the improvement in US yields. Support is eyed at $1250/$1245 before $1210 (Fibonacci 50% retracement on Dec 16th to Jun 5th rise). Only a successful recovery attempt above $1274, could encourage a rise to $1297 (minor 23.6% retrace).

WTI consolidates gains above the $50/barrel level. The sentiment remains positive for a further recovery toward $53/$55. The market remains buyer-in-dips at $50.15/$50 (minor 23.6% retrace on Sep 20th to Oct 10th rise / 200-hour moving average), $48.92 (major 38.2% retracement).
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