POWER: German, French Spot Power Indices Diverge

• On the commodity front, Gold traded lower Tuesday, extending the bear cycle that started Oct 20. Note that the trend has recently been in overbought territory and the deeper retracement is allowing this condition to unwind. Attention is on the next key support at the 50-day EMA, at $3842.8. A clear break of this average would strengthen a bear theme. Initial resistance is at $4161.4, the Oct 22 high.
• Recent gains in WTI futures appear corrective for now, however, note that price has traded through the 50-day EMA, at $61.10 The breach of this average signals scope for a stronger recovery. A resistance at $62.34, the Oct 8 high, has also been pierced. A clear break of it would expose key resistance at $65.77, the Sep 26 high. Key support and the bear trigger has been defined at $55.96, the Low Oct 20.

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• In FX, support to watch in EURUSD is 1.1542, the Oct 9 low. Clearance of this level is required to cancel a recent bullish signal and this would confirm a resumption of the bear cycle that started Sep 17. A break would open 1.1516, the 76.4% retracement of the Aug 1 - Sep 17 bull leg, and clearance of 1.1516 would expose key support at 1.1392, the Aug 1 low. Price needs to trade above 1.1728, the Oct 17 high, to strengthen a bull theme.
• A bear threat in GBPUSD remains present and this week’s sell-off strengthens this theme. The pair has breached 1.3249, the Oct 14 low and a bear trigger. The break confirms a resumption of the downtrend that started Sep 17 and sights are on 1.3220 next (pierced), a 0.764 projection of the Sep 17 - 25 - Oct 1 price swing. The break lower has also exposed key support at 1.3142, Aug 1 low. Initial resistance is 1.3377, the 20-day EMA.
• The trend condition in USDJPY is unchanged, it remains bullish and recent weakness appears to have been a correction. Attention is on key resistance at 153.27, the Oct 10 high. A break of this level would confirm a resumption of the medium-term uptrend. This would open 153.82, a 1.618 projection of the Sep 17 - 26 - Oct 1 price swing. Note that MA studies are in a bull-mode position, highlighting a primary uptrend. First important support to watch lies at 151.19, the 20-day EMA.