Price & Time: Key Levels to Watch in the Aftermath of NFP

USD/JPY slams into Fibonacci resistance

S&P 500 still looks to be in a broader topping process

USD/CHF testing important Gann resistance

 

 

Foreign Exchange Price & Time at a Glance:

Price & Time Analysis: USD/JPY

• USD/JPY traded to its highest level since late July on Friday before encountering resistance just ahead of the 78.6% retracement of the July to August decline in the 100.30 area
• While over the 50% retracement of the August to September advance in the 98.00 area our near-term trend bias will remain higher
• The 100.30 level is now a near-term upside pivot with strength above required to trigger the next leg higher
• A minor cycle high is seen around the middle of next week
• The 98.75 area is intermediate support, but only clear weakness below 98.00 turns the technical outlook to negative

USD/JPY Strategy: Like the long side while over 98.00.

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
USD/JPY	*98.00	98.75	99.65	*100.30	100.70

Price & Time Analysis: USD/CHF

• USD/CHF traded to its highest levels since mid-July on Friday before finding resistance at the 1x1 Gann angle line of the year’s high in the .9445 area
• While over the 2nd square root progression of the August low in the .9340 area our near-term trend bias will remain higher
• A close over .9445 is needed to prolong the advance and signal that a more important move higher is unfolding
• A medium-term cycle turn window is seen around the latter half of next week
• The 4th square root progression of the year’s low near .9400 should act as near-term support, but only weakness below .9340 will turn us negative on USD/CHF

USD/CHF Strategy: Like the long side while over .9340

 

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
USD/CHF	*0.9340	0.9400	0.9440	*0.9445	0.9500

 

Price & Time Analysis: GOLD

• XAU/USD has come under steady downside pressure since failing on a closing basis at the 7th square root progression of the year-to-date low in the 1418 area
• While over 1350 our near-term trend bias will remain higher
• The 1418 level is now an important near-term pivot, but over 1440 is really required to set off another important leg higher
• A minor cycle turn window is seen around the middle of next week
• Weakness below 1350 would undermine the immediate positive tone, but only weakness below 1280 would turn our outlook negative on the metal

USD/CAD Strategy: Like the long side while over 1350

 

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
XAU/USD	1318	*1350	1.0480	1418	*1440

 

Focus Chart of the Day: S&P 500

The recovery we were looking for in the S&P 500 off important Gann support at 1627 has unfolded nicely. If our interpretation of the short-term cyclical picture is correct then the index should experience another day or two of strength before entering into another important turn window. Failure to gain traction over the 1677/92 resistance zone during this time will raise the possibility that a broader topping process is indeed in play. Weakness below 1627 at anytime should trigger a much more serious decline.

 

Source: http://dld.bz/cPrcs