EUR/USD – Push down to retest range support
click to enlarge charts
- 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
click to enlarge chart
- 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
click to enlarge chart
- 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
click to enlarge chart
- 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
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.