Daily FX Technical Trend Bias/Key Levels (Wed 29 May)

USD strength still faces the risk of a further pull-back.

EUR/USD – 1.1120 remains the key support to watch

click to enlarge chart

  • The pair had dipped down as expected from Mon, 27 May high of 1.1215 and manged to hold above the 1.1120 key short-term pivotal support as per highlighted in our previous report (click here for a recap). In addition, the hourly RSI oscillator has shaped a bullish divergence signal at its oversold region which suggests a slowdown in the downside momentum seen yesterday.
  • Maintain bullish bias above 1.1120 key short-term pivotal support and a break above the minor descending trendline at 1.1190 reinforces a further potential push up to target the minor range resistance at 1.1245/1260 (recent post FOMC swing high areas & medium-term descending resistance from 24 Sep 2018).
  • On the other hand, an hourly close below 1.1120 resumes the bearish impulsive downleg sequence towards the next near-term support at 1.1060/1040 (Fibonacci retracement/expansion cluster).

GBP/USD – 1.2600 remains the key support to watch

click to enlarge chart

  • No major changes on its short-term elements; maintain bullish bias above 1.2600 key short-term pivotal support for a further potential corrective rebound to target the 1.2750/1.2785 intermediate resistance (also the upper boundary of the minor descending channel in place since 03 May 2019).
  • On the other hand, an hourly close below 1.2600 resumes the slide towards the major support at 1.2545/2530 (also the primary ascending range support in place since 07 Oct 2016 low).

USD/JPY – Further downside towards major support

click to enlarge chart

  • Drifted down lower as expected towards the 13 May 2019 minor swing low area of 109.00. Maintain bearish bias with a tightened key short-term pivotal resistance at 109.70 (also the minor swing high area of 24 May 2019 & the descending trendline from 24 Apr 2019 high) for a further potential push down to target the major support at 108.50.
  • On the other hand, an hourly close above 109.95 invalidates the bearish scenario for a squeeze up towards the next resistance at 110.65 (21 May 2019 swing high area).

AUD/USD – Corrective bounce scenario remains intact

click to enlarge chart

  • Traded sideways yesterday above the 0.6900 key short-term pivotal support. No major changes on its elements, maintain bullish bias for another potential leg of corrective rebound sequence to target the next intermediate resistance at 0.6985.
  • On the other hand, an hourly close below 0.6900 resumes the slide for a retest on 0.6860 before targeting 0.6830 next.

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.