Top Story

Daily Forex Technical Trend Bias/Key Levels (Tues 16 Jul)

EUR/USD – Potential push down towards minor range support


click to enlarge chart

  • The pair has pushed up towards the upper limit of the short-term neutrality range at 1.1310 as it printed a high of 1.1284 yesterday, 15 Jul. Recalled that we have turned neutral in our previous report due to mix elements (click here for a recap).
  • Right now, key elements have indicated signs of a potential short-term bearish reversal at this juncture where the price action of the pair has formed a daily bearish “Shooting Star” candlestick pattern at the end of yesterday, 15 Jul U.S. session right below the pull-back resistance of a former minor ascending support from 30 May 2019 low and the medium-term descending resistance from 10 Jan 2019 high.
  • Flip back to a bearish bias below 1.1310 key short-term pivotal resistance for a potential push down to target 1.1210 follow by the 1.1180 minor range support. However, a break with an hourly close above 1.1310 negates the bearish tone for a squeeze up to retest the 25 Jun swing high of 1.1410.

GBP/USD – Bears remain in control


click to enlarge chart

  • Yesterday’s push up in price action has managed to stall right below the 1.2590 key short-term pivotal resistance as per highlighted in our previous report (printed a high of 1.2580).
  • The bounce in price action from last week’s low has formed a bearish minor “Ascending Wedge” and yesterday’s price action has broken below its support coupled with a prior bearish divergence seen in the hourly Stochastic oscillator at its overbought region. Maintain bearish bias for a further potential push down to retest last week’s swing low at 1.2440 before targeting the next near-term support at 1.2370 (06 Apr 2017 low & Fibonacci projection).
  • However, a break with an hourly close above 1.2590 negates the bearish tone for an extension of the corrective rebound towards the next resistance at 1.2785.

USD/JPY – Further drop in progress


click to enlarge chart

  • Last Fri, 12 Jul Asian session, the pair has push up to test the 108.60 key short-term pivotal resistance highlighted in our previous report (without an hourly close above it) before it reversed down as expected.
  • Maintain bearish bias in any bounces below 108.60 key short-term pivotal resistance for a further potential push down to target the near-term supports of 107.55 and 107.10.
  • However, a break with an hourly close above 108.60 negates the bearish tone again for a squeeze up to retest the 109.00 key medium-term resistance.
AUD/USD – 0.7050 is the key resistance to watch


click to enlarge chart

  • The pair has broken above the 0.7000 key short-term pivotal resistance and drifted up to test the 0.7040/50 key medium-term resistance (also the descending trendline from 03 Dec 2018 high).
  • Bullish exhaustion elements have been sighted as this juncture; the bounce from 12 Jul 2019 low has evolved into a minor “Ascending Wedge” range configuration coupled with a bearish divergence signal seen in the hourly RSI oscillator at its overbought region.Maintain bearish bias with 0.7040/50 as the pivotal resistance and an hourly close below 0.7025 reinforces a potential push down to retest 0.6965 before targeting the minor range support of 0.6900.
  • However, a clearance with a daily close above 0.7050 invalidates the medium-term down move sequence in place since 03 Dec 2018 high for a further recovery towards the next intermediate resistance at 0.7130.

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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT