Daily Forex Technical Trend Bias/Key Levels (Tues 09 Jul)
Kelvin Wong July 8, 2019 11:24 PM
USD remains firm with GBP/USD on the verge of a potential major bearish breakdown.
EUR/USD – Minor downleg remains in progress
click to enlarge chart
- Continued to inch down lower as expected post U.S. jobs data release/non-farm payrolls on last Fri, 05 Jul and met the first short-term downside target/support of 1.1225 as per highlighted in our previous report (click here for a recap).
- No clear signs of bearish exhaustion yet; maintain bearish bias below a tightened key short-term pivotal resistance now at 1.1275 for a further potential push down to target 1.1180 follow by the medium-term support of 1.1130/1120 (also the current year-to-date swing low area).
- On the other hand, a clearance with an hourly close above 1.1275 invalidates the bearish tone a revival of a corrective bounce towards 1.1410.
GBP/USD – On the verge of a potential major bearish breakdown
- Dropped lower as expected and tested the major support of 1.2500 (the ascending trendline in place since Oct 2016 low) before it traded sideways in a tight range of 66 pips. No clear signs of bearish exhaustion; maintain bearish bias with a tightened key short-term pivotal resistance now at 1.2590 for a further potential push down to target the next near-term support at 1.2370 in the first step.
- On the other hand, a clearance with an hourly close above 1.2590 negates the bearish tone for a squeeze up towards 1.2705 (descending channel resistance from 03 May 2019 high).
USD/JPY – Mix elements, watch key resistance at 109.00
click to enlarge chart
- Broke above the tightened 108.15 key short-term resistance as per highlighted in our previous report and squeezed up towards the key medium-term resistance at 108.90/109.00 (also the former primary ascending support from Jun 2016 low).
- Mix elements now, prefer to turn neutral between 109.00 and 108.25. An hourly close below 108.25 revives the short-term bears. On the flipside, a daily close above 109.00 sees a further recovery towards the next resistance at 109.90.
AUD/USD – Minor downleg remains in progress
click to enlarge chart
- Drifted down lower as expected and hit the first short-term target/support of 0.6955 as per highlighted in our previous report. Maintain bearish bias with a tightened key short-term resistance now at 0.7000 for a further potential push down to target the next near-term support at 0.6900.
- On the other hand, a clearance with an hourly close above 0.7000 negates the bearish tone for a squeeze up to retest the medium-term resistance at 0.7040/50.
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.