Market News & Analysis

Top Story

Daily FX Technical Trend Bias/Key Levels (Tues 12 Jan)

FX – USD strength remains intact

  • EUR/USD – Trend bias: Down. The pair has broken down below the 1.1320 support of a medium-term ascending range configuration in place since 12 Nov 2018 low. It is likely that the pair has kickstarted  a potential impulsive down move sequence within its major primary down trend in place since 16 Feb 2018 high. Flip to a bearish bias in any bounces below the key short-term resistance at 1.1325 (former minor swing low areas of 07/09 Feb 2019 + minor descending trendline from 31 Jan 2019 high) for a further potential push down to retest the 1.1220/1214 swing low area of 13 Nov 2018 in the first step. However, a break above 1.1325 negates the bearish tone for a corrective rebound towards 1.1390/1420 (50%/61.8% Fibonacci retracement of the recent slide from 31 Jan 2019 high to 11 Feb 2019 low).
  • GBP/USD – Trend bias: Push down within medium-term range configuration. The pair has broken below the 1.3010/3000  pull-back support of the former complex descending range resistance from 20 Sep 2018 which suggested that the recent breakout seen on 23 Jan 2019 was a bullish failure. Flip back to a bearish bias in any bounces below the key short-term resistance at 1.2935 (former minor swing low areas of 08/11 Feb 2019 + 23.6% Fibonacci retracement of the recent slide from 26 Jan 2019 high to 11 Feb 2019 low of 1.2844) for a further potential push down to target the next near-term support at 1.2780/2730 (former minor congestion area from 31 Dec 2018/10 Jan 2019 + Fibonacci retracement/expansion cluster). However, a break above 1.2935 negates the bearish tone for a corrective rebound towards 1.2990/3030 intermediate resistance (minor descending trendline from 26 Jan 2019 high + minor swing high area of 07 Feb 2019 + 38.2%/50% Fibonacci retracement of the recent slide from 26 Jan 2019 high to 11 Feb 2019 low).  
  • USD/JPY – Trend bias: Push up within a major sideways range in place since 10 May 2017. The pair has pushed up as expected and surpassed the 110.00 minor range resistance/target. Maintain bullish bias in any dips with 110.00 as the key short-term support (former minor range resistance from 19 Jan/07 Feb 2019) for a further potential push up to target the next intermediate resistance at 111.40/80 (minor swing high areas of 21/27 Dec 2018 + Fibonacci expansion cluster). However, failure to hold at 110.00 indicates a failure bullish breakout to resume its medium-term corrective decline to retest the 108.80/50 swing low area of 31 Jan 2019 in the first step.
  • AUD/USD – Trend bias: Down. The pair has broken down below the minor ascending trendline support from the 03 Jan 2019 flash crash swing low area. Flip to bearish bias in any bounces below the key short-term resistance at 0.7140 (38.2% Fibonacci retracement of the recent decline from 05 Feb 2019 high to today, 12 Feb Asian session intraday low of 0.7050 + 06 Feb 2019 minor swing high) for a further potential push down to target the next near-term support at 0.7000 (Fibonacci retracement/expansion cluster). However, a break above 0.7140 negates the bearish tone for a corrective rebound towards the 0.7175/7200 intermediate resistance (minor descending trendline from 31 Jan 2019 high + pull-back resistance of the former ascending trendline support from 03 Jan 2019 swing low area +  50%/61.8% Fibonacci retracement of the on-going decline from 31 Jan 2019 high to 12 Feb 2019 Asian session intraday low of 0.7050).
  • NZD/USD – Trend bias: Down. The pair has broken down below the minor ascending trendline from 03 Jan 2019 swing low. Flip to a bearish bias in any bounces below the key short-term resistance at 0.6770 (the minor swing high areas of 08/11 Feb 2019) for a further potential push down to target the next near-term support at 0.6670/6640  (ascending trendline from 09 Oct 2018 low + Fibonacci retracement/expansion cluster). However, a break above 0.6770 negates the bearish tone for a corrective rebound towards the 0.6830 intermediate resistance (the pull-back of the former minor ascending trendline support from 03 Jan 2019 low + 50% Fibonacci retracement of the on-going slide from 01 Feb 2019 high to 12 Feb 2019, Asian session current intraday low of 0.6716).                    

Disclaimer

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.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital 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), GAIN Capital Singapore 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 GAIN Capital Singapore 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 GAIN Capital Singapore 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.

GAIN Capital Singapore 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.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.