The recovery in the EURUSD
is expected to remain capped heading into the European Central Bank (ECB) meeting due Thursday. The trend remains negative below 1.1080 (major 38.2% retracement on Sep 26th to Oct 14th fall). Breaking below 1.0951 (Jul 24th low), we could see a further extension of losses to 1.0910 (Jun 23rd low), before 1.0880/1.0850 area. Above 1.1080, the short-term bullish reversal could encourage a further rise to 1.1118 (50% retrace) and 1.1156 (major 61.8% retrace).
In Asia, all G10 currencies gained against the US dollar except the yen. The USDJPY
remains in bull’s hands, with support holding tight at 103.75 / 103.55 area (200-hour moving average and minor 23.6% retracement on Sep 27th to Oct 13th rise) for a further push toward 105.00, max 105.50. The short-term bias remains positive above 102.89 (major 38.2% retracement).
surged to 1.2276 on rising inflationary pressures in the UK. The GBP-rally remained short-lived however, the pound eased rapidly to its pre-CPI levels. Sellers remain on the sideways given the oversold conditions in the pound markets, while buyers refrain from stepping in, afraid of a sudden, aggressive sell-off. The short-term resistance is seen at 1.2295 / 1.2305 (major 38.2% retracement on Sep 29th to Oct 7th crash / 200-hour moving average), if surpassed, could bring along a further recovery to 1.2440 (Fibonacci 50% level). Stops are eyed below 1.2080 and 1.2000.
moves higher, and the strengthening positive momentum encourages the development of a solid bullish trend for a potential test of 0.7710/0.7730 mid-term resistance. Intra-day supports are seen at 0.7640 (minor 23.6% retracement on Oct 13th to Oct 18th rise) and 0.7615 (major 38.2% retrace). Gold
tested $1260 in Asia on the back of a broad based US-dollar retreat. The short-term support is presumed at $1250 (major 38.2% retracement on Dec 16th to Jun 5th rise), while the 200-day moving average ($1276) is seen as a solid ceiling, before $1297 (minor 23.6% retrace).
find buyers below $50 level. The momentum remains positive yet weakened for a surge toward the $53/$55 mid-term resistance. The key support is eyed at $48.92 (major 38.2% retracement on Sep 20th to Oct 10th rise), which should distinguish between a further positive attempt to $53/55 and a short-term bearish reversal to $47.93 (50% level).