Daily FX Technical Trend Bias/Key Levels (Tues 16 Apr)

EUR/USD eyeing 1.1350 medium-term range resistance before risk of minor correction.

EUR/USD – Residual push up within range

click to enlarge chart

  • Continued its push up as expected and met the near-term resistance/target of 1.1316/1325 as per highlighted in our previous report (click here for a recap). It printed a high of 1.1324 on last Fri, 12 Apr which also corresponded to the exit target of the recent minor “Inverse Head & Shoulders” reversal configuration bullish breakout seen on 08 Apr 2019.
  • Maintain bullish bias as supported by positive short-term momentum reading seen from the hourly Stochastic oscillator while it still shows further upside potential before it reaches an extreme overbought level 92. Tightened key short-term pivotal support to 1.1280 (former minor swing high areas of 09/11 Apr 2019 & the lower boundary of the minor ascending channel from 02 Apr 2019 low) for a further potential push up to target the next intermediate resistance at 1.1340/1350 (medium-term descending resistance from 24 Sep 2018 high & 61.8% Fibonacci retracement of the previous slide from 20 Mar 2019 high to 02 Apr 2019 low).
  • Do be cautious as the expected push up may be the last leg before it reaches the aforementioned 1.1340/1350 descending resistance of a medium-term “Descending Triangle” in place since 12 Nov 2018 low where another round of slide may materialise based on Elliot Wave/fractal analysis. A break with an hourly close below 1.1280 shall invalidate the push up scenario for a slide towards 1.1245 before the range support of 1.1175.

GBP/USD – 1.3120 remains the key resistance to watch

click to enlarge chart

  • Continued to trade sideways below the 1.3120 key short-term pivotal resistance as per highlighted in our previous report. No major changes on its key short-term elements, maintain bearish bias and a break below the near-term support of 1.3065 (minor ascending trendline from 05 Apr 2019 low) is likely to reinforce a further potential push down to retest the 1.2980/2960 minor range support in place since 11 Mar 2019 in the first step.
  •  On the other hand, a clearance with an hourly close above 1.3120 negates the bearish tone for a further push up towards the next intermediate resistance at 1.3190 (former ascending range support from 03 Jan 2019 low & minor descending trendline

USD/JPY – Further push up

click to enlarge chart

  • Broke above the 111.80 upper limit of the short-term neutrality zone which validated a further up move. Flip to a bullish bias with 111.75 as the key short-term pivotal support (pull-back support for the former minor descending resistance from 05 Mar 2019 high & close to 23.6% Fibonacci retracement of the last push up seen from 10 Apr 2019 low to yesterday, 15 Apr high of 112.10) for a further potential push up to target the next intermediate resistance at 112.50 (upper boundary of the minor ascending channel in place since 25 Mar 2019 low & 0.76 Fibonacci expansion of up move from 25 Mar 2019 low to 05 Apr 2019 high projected from 10 Apr 2019 low).
  • On the other hand, a break below 111.75 negates the bullish tone for another round of slide to retest the 110.85 support.

AUD/USD – Mix elements

click to enlarge chart

  • Last Fri 15 Apr, it has probed into the key medium-term resistance zone of 0.7175/0.7200 (medium-term descending range resistance from 03 Dec 2018 high & swing high areas of 21/27 Feb 2019). It has traded sideways since yesterday, 15 Apr before it reintegrated back below the medium-term descending range resistance by a slide of 30 pips to print a current intraday low of 0.7140 after the release of RBA minutes that has indicated a discussion of interest rate cuts in the recent 02 Apr monetary policy meeting.
  • Mix elements now, prefer to turn neutral between 0.7200 and 0.7130 (minor ascending trendline support from 02 Apr 2019 low). A break below 0.7130 sees a further push down to retest the 0.7060 minor range support in place since 20 Mar 2019.
  • On the flipside, a clearance with an hourly close above 0.7200 opens up scope for a bullish range breakout to target the next intermediate resistance at 0.7290 (31 Jan/01 Feb 2019 swing high area) in the first step.

Charts are from eSignal

Related Articles


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.