Daily Forex Technical Strategy Tues 23 Jul

EUR/USD – Push down to retest range support

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The pair has broken below the 1.1240 lower limit of the short-term neutrality zone as per highlighted in our previous report (click here for a recap). As the hourly Stochastic oscillator has started to inch up from an extreme oversold level, the pair may stage a bounce at this juncture back towards the 1.1245 intermediate resistance.
Flip to a bearish bias in any bounces below the 1.1285 short-term pivotal resistance for another round of potential push down to retest the 1.1180 neckline support of the “Head & Shoulders” configuration and below exposes the 1.1130/1120 medium-term range support. On the other hand, an hourly close above 1.1285 sees an extension of the corrective rebound towards the 1.1345 intermediate resistance.

GBP/USD – Drop in progress

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Pushed down as expected and hit the first short-term downside target/support of 1.2450 as per highlighted in our previous report. Maintain bearish bias in any bounces below 1.2570 pivotal resistance for a further potential push down to target the next supports at 1.2370 follow by 1.2230 next.
On the other hand, an hourly close above 1.2570 invalidates the bearish tone for an extension of the corrective rebound towards 1.2760 range resistance.

USD/JPY – Sideways

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The pair pushed up and challenged the 107.95 short-term pivotal resistance (printed a high of 108.07 in yesterday, 22 Jul U.S. session before an hourly close back at 107.95).
Mix elements now, prefer to turn neutral between 108.10 and 107.75. Bears need to break and have an hourly close below 107.75 to reinstate a potential drop towards the 107.10 minor support in the first step. On the flipside, a clearance with an hourly close above 108.10 sees a squeeze up towards 108.60 with a maximum limit set at the 109.00 key medium-term resistance.

AUD/USD – Watch the 0.7035/7020 key support

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The pair has pull-backed towards the 0.7035 key short-term pivotal support as per highlighted in our previous report which is also the former medium-term “Descending Wedge” resistance from Dec 2018.
The hourly Stochastic oscillator has shaped a bullish divergence signal which suggests a slowdown in the recent downside momentum. Tolerate the excess to 0.7020 and maintain the bullish bias for a potential upleg to retest the 0.7080 minor swing high before targeting the next resistance at 0.7130.
On the other hand, a break with an hourly close below 0.7020 indicates a failure bullish breakout for a slide back towards 0.6960 in the first step.

Charts are from eSignal

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