MNI European Morning FX Technical Analysis

27 October 2017

By Kyle Shortland

Please click on this link to access MNI's daily European FX Technical Analysis

Pdf - http://tinyurl.com/kvgb59s

EURO-DOLLAR TECHS: $1.1583 Support Now Key

*RES 4: $1.1785 Hourly resistance Oct 26 

*RES 3: $1.1725 Low Oct 23 now resistance 

*RES 2: $1.1689 Hourly support Oct 26 now resistance 

*RES 1: $1.1668 Hourly resistance Oct 26

*PRICE: $1.1634 @ 0430GMT

*SUP 1: $1.1611 Low July 26 

*SUP 2: $1.1583 High July 18 now support 

*SUP 3: $1.1538 Daily bear channel base 

*SUP 4: $1.1478 Low July 20

*COMMENTARY: The marginal break of the bear channel top remained capped by the

55-DMA ($1.1835) and ahead of the key $1.1880 resistance. The sharp sell-off

leaves the pair looking heavy with the close below the 100-DMA ($1.1677) seeing

bearish focus shift to $1.1478-1.1583 where the daily bear channel base is

found. Layers of resistance add weight to the bearish case with bulls now

needing a close above $1.1725 to ease bearish pressure.

     CABLE TECHS: Focus Returns To $1.2995-1.3088

*RES 4: $1.3240 Hourly resistance Oct 26b 

*RES 3: $1.3183 Hourly resistance Oct 26a 

*RES 2: $1.3161 55-DMA 

*RES 1: $1.3146 Hourly support Oct 26 now resistance

*PRICE: $1.3134 @ 0430GMT

*SUP 1: $1.3110 Low Oct 25 

*SUP 2: $1.3088 Low Oct 20 

*SUP 3: $1.3060 100-DMA 

*SUP 4: $1.2995 High Sept 1 now support

*COMMENTARY: Time spent above the 21-DMA ($1.3205) was short with the break of

the 21-DMA leaving the pair looking heavy and focus back to layers of support

$1.2995-1.3088 where the 100-DMA is located. Bulls now need a close above

$1.3183 to ease bearish pressure and above $1.3240 to shift focus back to

$1.3279-1.3343. Bears look for a close below $1.2995 to shift overall focus to

the 200-DMA ($1.2839).

     DOLLAR-YEN TECHS: Bulls Need Close Above Y114.49

*RES 4: Y115.62 High Jan 19 

*RES 3: Y115.34 Falling LT weekly TL 

*RES 2: Y114.49 Monthly High July 11 

*RES 1: Y114.27 Hourly resistance Oct 27

*PRICE: Y114.12 @ 0430GMT

*SUP 1: Y113.92 Hourly support Oct 26 

*SUP 2: Y113.55 Hourly support Oct 26a 

*SUP 3: Y113.25 Low Oct 24 

*SUP 4: Y113.06 Hourly support Oct 20a

*COMMENTARY: Pressure returned to the Y114-49 resistance with the pair finding

support ahead of the key Y112.30-113.06 support region this week. Bulls need a

close above Y114.49 to shift focus to Y115.34-62. The Bollinger top (Y114.15) is

the key concern for bulls. Bears now look for a close below Y113.92 to gain

breathing room and hint at a correction back to Y113.06-25. Overall below the

55-DMA (Y111.26) is needed to end bullish hopes and return focus to 2017 lows.

     EURO-YEN TECHS: Flirting with Bull Channel Base

*RES 4: Y133.99 Alternating hourly support/resistance

*RES 3: Y133.50 Hourly support Oct 24 now resistance

*RES 2: Y133.24 Hourly support Oct 26 now resistance

*RES 1: Y132.96 Hourly resistance Oct 26

*PRICE: Y132.76 @ 0430GMT

*SUP 1: Y132.57 Low Oct 26 

*SUP 2: Y132.44 Alternating hourly support/resistance 

*SUP 3: Y131.95 Hourly support Oct 18 

*SUP 4: Y131.67 55-DMA

*COMMENTARY: Continued hesitation ahead of Y134.59 resulted in a sell-off with

the pair flirting with the bull channel base (Y132.67). Bears need a close below

Y132.44 to confirm a break and shift immediate focus to the 55-DMA. Bears need a

close below the 55-DMA to target a deeper correction initially focused on

Y129.36-130.59 where the 100-DMA (Y130.08) is found. Bulls need a close above

Y133.50 to ease bearish pressure and above Y133.99 to return focus to Y134.59.

     EURO-STERLING TECHS: Bears Focus On 55-WMA & 200-DMA

*RES 4: Gbp0.8956 High Oct 26 

*RES 3: Gbp0.8925 Alternating hourly support/resistance 

*RES 2: Gbp0.8897 Hourly resistance Oct 26 

*RES 1: Gbp0.8873 Hourly support Oct 26 now resistance

*PRICE: Gbp0.8860 @ 0430GMT

*SUP 1: Gbp0.8851 Low Oct 26 

*SUP 2: Gbp0.8817 Bollinger band base 

*SUP 3: Gbp0.8800 Low Oct 2 

*SUP 4: Gbp0.8752 200-DMA

*COMMENTARY: The rally remained capped ahead of Gbp0.8975 and the 55-DMA

(Gbp0.8993) with the aggressive sell-off and bearish close seeing focus return

to Gbp0.8725-52 where Sept lows, the 200-DMA and 55-WMA (Gbp0.8727) are

situated. The Bollinger base is the key concern for bears with potential to

limit follow through. Bulls now need a close above Gbp0.8897 to ease bearish

pressure and hint at a bounce back to Gbp0.8956-0.9048.

     AUSSIE TECHS: Focus Now On $0.7513-86

*RES 4: $0.7739 - Hourly resistance Oct 25tance

*RES 3: $0.7720 - Low Oct 11 now resistance

*RES 2: $0.7692 - 200-DMA

*RES 1: $0.7650 - Low Oct 26 now resistance

*PRICE: $0.7635 @ 0430GMT

*SUP 1: $0.7623 - Hourly support Oct 27 

*SUP 2: $0.7586 - Daily Bear channel base 

*SUP 3: $0.7564 - Low June 26 

*SUP 4: $0.7513 - Low June 9

*COMMENTARY: Bears have dominated this week with the close below the 200-DMA

seeing focus shift to $0.7513-86 where the daily bear channel base is noted. The

55-WMA comes in at $0.7630 and may slow the move. Overall bears look for a close

below $0.7312 to confirm focus on tests of 2017 lows. Bulls now need a close

above $0.7720 to ease bearish pressure and above $0.7775 to pressure the

$0.7808-0.7909 region where key DMAs and channel top are situated.

     US DOLLAR-INDEX TECHS: Focus Now On 95.167-464

*RES 4: 96.205 - High July 11 

*RES 3: 95.464 - Low July 13 now resistance 

*RES 2: 95.188 - Daily Bull channel top 

*RES 1: 95.167 - High July 20

*PRICE: 94.777 @ 0430GMT

*SUP 1: 94.544 - Hourly support Oct 26

*SUP 2: 94.306 - Hourly resistance Oct 26 now support

*SUP 3: 94.022 - 100-DMA

*SUP 4: 93.590 - 21-DMA

*COMMENTARY: The pair dipped below the 21-DMA marginally Thursday before an

aggressive rally saw closes above the 21-WMA (94.053) and 100-DMA that confirms

bullish focus on 95.167-464 where the daily bull channel top is noted. Bears now

need a close below 94.306 to gain breathing room and below the 100-DMA to shift

focus back to 92.724-93.594. The Bollinger top (94.520) is the key concern for

bulls with potential to limit follow through.

     US 10-YR YIELD TECHS: Focus Remains On 2.544-558

*RES 4: 2.558 - Low Mar 13 now resistance 

*RES 3: 2.550 - Daily Bull channel top 

*RES 2: 2.544 - High Mar 17 

*RES 1: 2.475 - High Oct 25

*PRICE: 2.463 @ 0430GMT

*SUP 1: 2.444 - Hourly support Oct 27 

*SUP 2: 2.408 - Low Oct 26 

*SUP 3: 2.394 - Hourly support Oct 24 

*SUP 4: 2.363 - Hourly support Oct 23

*COMMENTARY: Bears failed to trouble the 2.394 support Thursday with bulls

asserting dominance and now looking for a close above 2.475 to add support to

the case for a test of 2.544-558. Bulls need a close above 2.558 to confirm

focus on 2017 highs. The 2.394 support remains key. Bears need a close below

2.394 to ease bullish pressure and below the 21-DMA (2.347) to initially

pressure the 200-DMA (2.314) and hint at a correction back to 2.251-279.

NYMEX WTI TECHS: NYMEX WTI: (Z17) $53.11-73 Resistance Remains Key 

*RES 4: $53.73 - Low Apr 18 now resistance 

*RES 3: $53.18 - Bollinger band top 

*RES 2: $53.11 - Monthly High Sept 28 

*RES 1: $52.86 - High Oct 26

*PRICE: $52.65 @ 0430GMT

*SUP 1: $52.30 - Hourly support Oct 26 

*SUP 2: $51.89 - Low Oct 25 

*SUP 3: $51.55 - Low Oct 24 

*SUP 4: $51.52 - 21-DMA

*COMMENTARY: Bulls take comfort in pressure returning to the $53.11 resistance

with the $53.11-73 resistance region remaining key. Bulls need a close above

$53.11 to reconfirm a bullish bias and above $51.73 to shift focus to $55.03-12

where the daily bull channel top and Apr highs are situated. The 21-DMA remains

key with bears needing a close below to ease immediate bullish pressure and

shift focus to $50.13-87 where the 55 ($50.20) & 200 ($50.61) DMAs are noted.

SPOT GOLD TECHS: Immediate Focus On 200-DMA

*RES 4: $1291.1 - Hourly resistance Oct 19 

*RES 3: $1283.7 - High Oct 24 

*RES 2: $1280.8 - 21-DMA 

*RES 1: $1270.7 - Hourly support Oct 6 now resistance

*PRICE: $1267.9 @ 0430GMT

*SUP 1: $1261.4 - Bollinger band base 

*SUP 2: $1260.6 - Low Oct 6 

*SUP 3: $1259.6 - 200-DMA 

*SUP 4: $1248.7 - Daily Bull channel base

*COMMENTARY: Bears take comfort from a close below the 100-DMA that confirms

focus on $1243.8-1260.6 where the 200-DMA and channel base are situated. Bears

now need a close below $1243.8 to shift focus to $1194.9-1204.9 where July lows

are noted. Layers of resistance are weighing with bulls now needing a close

above $1283.7 to ease bearish pressure and hint at a correction back to

$1291.1-1296.9 where the 55-DMA is found.

--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com

[TOPICS: MTABLE]