Daily Forex Technical Trend Bias/Key Levels (Wed 03 Jul)
Kelvin Wong July 2, 2019 11:22 PM
JPY strength remains intact while GBP/USD looks vulnerable for a major bearish breakdown.
EUR/USD – Still evolving within a short-term bearish configuration
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- Traded sideways below the 1.1350 key short-term pivotal resistance as per highlighted in our previous report (click here for a recap). Since its minor swing high of 1.1390 printed on 28 Jun 2019, the pair has started to evolve within a minor descending channel.
- No change, maintain bearish bias below 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. On the other hand, 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 – Vulnerable for a major bearish breakdown
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- Drifted down lower as expected. No signs of bearish exhaustion yet and right now elements are suggested a potential major bearish breakdown below its ascending support (1.2500) in place since Oct 2016 major low (aftermath of the Brexit vote).
- Maintain bearish bias below a tightened key short-term pivotal resistance at 1.2670 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.
- On the other hand, 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 – Further push down in progress
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- Staged the expected push down below major pull-back resistance of the former primary ascending range support from Jun 2016 low as per highlighted in the previous report. Maintain bearish bias in any bounces below a tightened key short-term pivotal resistance at 108.15 for a further potential push down to retest the 25 Jun 2019 swing low of 106.80 in the first step.
- On the other hand, 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 – 0.7040 remains the key resistance to watch
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- Maintain bearish bias below 0.7040 key pivotal resistance for a potential push down to target the 0.6900 near-term support in the first step.
- On the other hand, a clearance with a daily close above 0.7040 invalidates the bearish scenario for an extension of the corrective rebound towards the next resistance at 0.7125.
Charts are from eSignal
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