Top Story

Daily Forex Technical Trend Bias/Key Levels (Thurs 04 Jul)

EUR/USD – Still evolving within a short-term bearish configuration


click to enlarge chart

  • Traded sideways yesterday below the 1.1320 intermediate minor resistance which did not have an impact from U.S. President Trump jawboning for a weaker USD via his tweet. Maintain bearish bias below the 1.1350 key short-term pivotal resistance for a further potential push down towards the next near-term supports at 1.1225 and 1.1180.
  • However, a clearance with an hourly close above 1.1350 negates the bearish tone for a squeeze up to retest 1.1420 (25 Jun 2019 swing high).

GBP/USD – Bears remain in control


click to enlarge chart

  • Inched down lower as expected to print a marginal low of 1.2555 in yesterday, 03 Jul European session before it traded sideways. Click here for a recap on our previous report.
  • Elements remain negative for a potential major bearish breakdown. Maintain bearish bias in any bounces below 1.2670 key short-term pivotal resistance for a further potential push down to test 1.2500 and a daily close below it sees an extension of the impulsive downleg to target the next support at 1.2370 in the first step.
  • However, a clearance with an hourly close above 1.2670 negates the bearish tone for a squeeze up towards the range resistance of 1.2785.

USD/JPY – Retreated from resistance


click to enlarge chart

  • Yesterday’s bounce from 107.50 Asian session low has managed to stall right at the intermediate minor resistance of 107.90. No change, maintain bearish bias below 108.15 key short-term pivotal resistance for another potential round of slide to retest the 25 Jun 2019 swing low area of 106.80.
  • However, a clearance with an hourly close above 108.15 negates the bearish tone for a squeeze up to retest the 108.55/90 major resistance.

AUD/USD – Short-term momentum has turned negative


click to enlarge chart

  • Inched up higher to challenge the 0.7040 key pivotal resistance (printed a current intraday high of 0.7048 in today’s Asian session before it staged a retreat). Short-term momentum has turned negative where the hourly RSI oscillator has just exited from its overbought region after a prior bearish divergence signal.
  • Tolerate the excess to 0.7050 and maintain the bearish bias for a potential downside reversal to target the near-term support at 0.6955 in the first step and a break below it sees 0.6900 next.
  • However, a daily close above 0.7050 invalidates the bearish scenario for an extension of the corrective rebound towards the next resistance at 0.7125.

Charts are from eSignal


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.