Currency Zone

EUR/USD Intraday: under pressure.

Pivot: 1.1310

Our preference: short positions below 1.1310 with targets at 1.1235 & 1.1200 in extension.

Alternative scenario: above 1.1310 look for further upside with 1.1340 & 1.1360 as targets.

Comment: the RSI is mixed to bearish.

 

USD/JPY Intraday: the bias remains bullish.

Pivot: 113.75

Our preference: long positions above 113.75 with targets at 114.20 & 114.40 in extension.

Alternative scenario: below 113.75 look for further downside with 113.50 & 113.30 as targets.

Comment: the RSI lacks downward momentum.

 

GBP/USD Intraday: consolidation.

Pivot: 1.2910

Our preference: short positions below 1.2910 with targets at 1.2820 & 1.2790 in extension.

Alternative scenario: above 1.2910 look for further upside with 1.2950 & 1.2985 as targets.

Comment: the RSI is mixed to bearish.

 

EUR/GBP Intraday: the bias remains bullish.

Pivot: 0.8740

Our preference: long positions above 0.8740 with targets at 0.8775 & 0.8785 in extension.

Alternative scenario: below 0.8740 look for further downside with 0.8730 & 0.8715 as targets.

Comment: the RSI is mixed to bullish.

 

USD/ZAR intraday: as long as 14.2660 is support look for 14.6630

Our pivot point is at 14.2660.

Our preference: as long as 14.2660 is support look for 14.6630.

Alternative scenario: below 14.2660, expect 14.1240 and 14.0390.

Comment: the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The pair could retrace. Moreover, the pair is trading above both its 20 and 50 MAs (respectively at 14.3620 and 14.3386).

Asian Shares Recover Early Losses To End Mixed

Asian stocks turned in a mixed performance on Monday as global growth worries persisted and investors awaited key economic indicators from China due Wednesday for directional cues.

Chinese markets posted strong gains after the China Securities Regulatory Commission rolled out a series of measures over the weekend to support the private sector.

The benchmark Shanghai Composite index surged 31.65 points or 1.22 percent to 2,630.52 while Hong Kong’s Hang Seng index closed 0.12 percent higher at 25,633.18.

Japanese shares ended little changed amid lack of fresh catalysts after the U.S. midterm elections. The Nikkei average finished marginally higher at 22,269.88, while the broader Topix index closed a tad lower at 1,671.95.

Tech shares underperformed, with Advantest losing 5.5 percent and TDK Corp declining 4 percent. Defensive stocks such as Tokyo Gas and East Japan Railway rose around 1 percent.

Sony tumbled 3.1 percent and Panasonic declined 1.6 percent despite a modestly softer yen. Real estate developer Mitsui Fudosan jumped 3.5 percent after raising its net profit forecast for the year ending March 2019.

Australian markets ended mostly higher, with energy stocks leading the surge after oil prices rose over 1 percent in Asian trade on the back of news that Saudi Arabia would reduce crude sales in December.

The benchmark S&P/ASX 200 rose by 19.50 points or 0.33 percent to 5,941.30, a three-week high, while the broader All Ordinaries index ended up 16.20 points or 0.27 percent at 6,027.20.

Woodside Petroleum, Santos, Oil Search and Origin Energy climbed 1-2 percent as oil prices climbed after a record run of losses. Healthscope shares soared 14.4 percent after the company said it had received a second takeover offer, this time from Brookfield Capital Partners.

Agribusiness Elders jumped 19.7 percent after it reported a 9.1 percent increase in full-year underlying profit.

Seoul stocks ended slightly lower as large-cap bio shares fell heavily. The benchmark Kospi dropped 5.65 points or 0.27 percent to 2,080.44. Samsung BioLogics plunged as much as 22.4 percent ahead of an announcement by South Korea’s financial regulator over its accounting practices.

New Zealand shares eked out modest gains, with the benchmark S&P/NZX 50 index closing up 25.45 points or 0.28 percent at 8,956.85. Z Energy shares rallied 1.9 percent to extend last week’s recovery while Fletcher Building lost 3 percent.

U.S. stocks fell on Friday, with a spate of weak earnings, falling energy prices on concerns over a supply glut and worries about inflation weighing on markets.

The Dow dropped 0.8 percent, the tech-heavy Nasdaq Composite tumbled 1.7 percent and the S&P 500 lost 0.9 percent.

Currency Zone

EUR/USD Intraday: under pressure.

Pivot: 1.1340

Our preference: short positions below 1.1340 with targets at 1.1300 & 1.1275 in extension.

Alternative scenario: above 1.1340 look for further upside with 1.1360 & 1.1390 as targets.

Comment: a break below 1.1300 would trigger a drop towards 1.1275.

 

 

USD/JPY Intraday: the bias remains bullish.

Pivot: 113.75

Our preference: long positions above 113.75 with targets at 114.10 & 114.40 in extension.

Alternative scenario: below 113.75 look for further downside with 113.50 & 113.30 as targets.

Comment: the RSI shows upside momentum.

 

 

GBP/USD Intraday: under pressure.

Pivot: 1.2950

Our preference: short positions below 1.2950 with targets at 1.2860 & 1.2830 in extension.

Alternative scenario: above 1.2950 look for further upside with 1.2985 & 1.3050 as targets.

Comment: the RSI shows downside momentum.

 

EUR/GBP Intraday: further advance.

Pivot: 0.8745

Our preference: long positions above 0.8745 with targets at 0.8785 & 0.8800 in extension.

Alternative scenario: below 0.8745 look for further downside with 0.8730 & 0.8715 as targets.

Comment: the RSI shows upside momentum.

 

USD/ZAR intraday: target 14.0400

Our pivot point is at 14.4260.

Our preference: target 14.0400.

Alternative scenario: above 14.4260, look for 14.5670 and 14.6510.

Comment: the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the pair is trading under its 20 MA (14.3338) but above its 50 MA (14.2972).