Foreign Exchange

The US dollar held firm tone against most of majors during European trading.
EURUSD steadies below 1.1200. Near-term bears eye strong daily cloud base / 200SMA support at 1.1167, which marks the downside trigger for extension towards key s/t support at 1.1122. Euro n/t sellers attracted by stronger dollar, awaiting US NFP data for clearer signal, after double long-legged Doji signaled indecision.
GBPUSD remains offered and eased further in Europe, exceeding former low at 1.2683. Fresh weakness breaks below one-month bear-channel from 1.3443, confirming strong bearish stance. Concerns of ‘hard Brexit’ continue to weigh.
The pair may extend to Fibonacci 100% Expansion target at 1.2520. Friday’s US NFP data will give more clues. Former critical support (post-Brexit low) at 1.2795 now marks strong resistance and stays intact for now.
EURGBP received fresh support and surged above 0.8841 (Wednesday’s peak), posting fresh 5-year highs. Near-term focus shifts towards psychological 0.9000 barrier and 0.9082 (July 2011 peak), after the pair fully retraced multi-year 0.8768/0.6924 downleg.
USDJPY firms above daily cloud top at 103.22 and broke above 103.73 (falling 100SMA). Several big names recommend longs and reported buying dollar.
Initial offers at 104.00, ahead of more significant 104.30/43 zone.
Daily close above cloud will give strong bullish signal.
AUDUSD moved below daily Kijun-sen line support at 0.7585 and probes below 0.7570 zone where larger stops are parked. Sentiment remains negative, as Asian / European trading was in red.
We need to see close below 0.7585 to complete reversal pattern and turn focus towards strong supports at 0.7542/30.
Commodities
Spot Gold and Silver resume steep descend that was paused for brief consolidation on Wednesday.
Prices slipped as dollar firmed and equities rose. Precious metals maintain strong negative sentiment ahead of US NFP data that should reinforce expectation of US interest rate hike that would prompt investors to exit their bullion positions.
Gold- fresh bearish acceleration below $1260 zone where temporary footstep was found, rallies towards next target at $1249, riding on extended wave C of five-wave cycle from $1352.
Silver accelerated through targets at $17.66 and $17.44 and eyes strong support at $17.08 (200SMA / FE 200% of the wave C from $20.05.
US Crude oil resumed steep ascend of past few days during European hours and eventually broke above psychological $50.00 barrier. Immediate target lies at $50.53m, with former recovery top at $50.53 (high of 09 June), coming in focus.
Brent oil rallies towards target at $52.83 (09 June peak), extending steep rally for the eight consecutive day.

Oil prices remain supported by OPEC intention to cut production by the end of the year and the fifth in a row draw of US crude stockpiles. Oil stocks fell by 3.0 million barrels on Wednesday, despite expectations for 2.6 million barrels build.
Stocks
European shares traded in mixed mode on Thursday, holding below recent highs. FTSE100 extended pullback from recent peak at 7090 and posted session low at 6966.
German Dax dipped to 10520, following repeated upside rejection, however, near-term price action remains within 10473/10636 congestion.
Wall Street fell after opening, with Dow, S&P 500 and Nasdaq 100 being down around 0.2% in average after US session start.
Economic indicators
Inflation in Switzerland rose by 0.1% in September, falling below forecasted 0.2% but above August release at -0.1%.

US weekly jobless claims beat the forecast and fell to 249K in the week behind us, against 257K forecast and last week’s release at 257K, Market Analysis