Top Story

Daily Forex Technical Trend Bias/Key Levels (Wed 19 Jun)

EUR/USD – Further potential push down towards medium-term range support

click to enlarge chart

  • Broke below the 1.1200 lower limit of the short-term neutrality zone as per highlighted in our previous report. Yesterday’s drop has been triggered by a dovish speech made by “soon to be outgoing” ECB President Draghi that ECB could cut interest rates again or kickstart another round of QE.
  • Momentum has turned negative again, flip back to a bearish bias below 1.1220 key short-term pivotal resistance (also the upper boundary of a minor descending channel from 12 Jun 2019 high) for a potential residual push down to target 1.1150 support with a maximum limit set at 1.1120 medium-term range support.
  • However, a clearance with an hourly close above 1.1220 triggers a corrective rebound towards the next intermediate resistance at 1.1280.

GBP/USD – Minor corrective rebound in progress


click to enlarge chart

  • Staged the expected bounce above the 1.2500 key pivotal support as per highlighted in our previous report (click here for a recap).
  • It ended yesterday’s U.S. session with a daily bullish “Hammer” candlestick pattern and printed a current intraday high of 1.2570 in today’s Asian morning session. No change, maintain bullish bias in any dips above the 1.2500 pivotal support for a further potential corrective bounce towards the intermediate resistance zone of 1.2610/2650.
  • However, a break with an hourly close below 1.2500 may see spike down to towards the next support at 1.2460/2440 (03 Jan 2019 swing low & Fibonacci expansion cluster).

USD/JPY – 108.65 remains the key resistance to watch


click to enlarge chart

  • Continued to trade sideways within the minor “Expanding Wedge” range configuration for the past 3 weeks since 04 Jun 2019. Yesterday’s push up seen in the U.S. session led to a retest on the 108.65 key pivotal resistance after news broke out that a planned meeting between U.S. President Trump and China’s Xi to take place during the G20 summit on 28/29 Jun 2019.
  • Maintain bearish bias for a slide to retest 107.80 and a break below it reinforces a further drop towards the next near-term support at 107.30/10 (Fibonacci expansion cluster).
  • However, an hourly close above 108.65 invalidates the bearish scenario for a squeeze up towards the next intermediate resistance at 109.25.

AUD/USD – Minor corrective rebound in progress


click to enlarge chart

  • Managed to stage the expected bounce at the 0.6830/6810 key short-term pivotal support as per highlighted in our previous report. It printed a current intraday high of 0.6885 in today’s Asian morning session. Maintain bullish bias in any dips for a further potential corrective bounce towards the intermediate resistance zone of 0.6900/6930.
  • However, a break with an hourly close below 0.6810 resumes the down move sequence to test the 03 Jan 2019 flash crash low of 0.6740 in the first step.

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.