Open account
☰
Open account
✖

Daily FX Technical Trend Bias Key Levels Fri 24 May

Article By: ,  Financial Analyst
May 24, 2019 12:59 AM

EUR/USD – Mix elements, watch 1.1200 & 1.1120


click to enlarge chart

  • Inched down lower at the start of yesterday, 23 May U.S. session to hit the first target/support at 1.1120. It printed an intraday low of 1.1106 before a rebound of 78 pips that erased the yesterday’s losses on the back of a weaker than expected preliminary U.S. Markit manufacturing and services PMI data for May. Click here for a recap on our previous report.
  • Mix elements now as the pair floated up towards the 1.1200 short-term key pivotal resistance with a bullish reading seen in the hourly RSI oscillator. Prefer to turn neutral now between 1.1120 and 1.1200. Only an hourly close below 1.1120 revives the bearish tone for a further slide towards the next near-term support at 1.1060/1040 (Fibonacci retracement/expansion cluster).
  • On the flipside, a clearance above 1.1200 sees a corrective bounce towards 1.1245/1260 (range resistance in place since the recent FOMC meeting held on 01 May).

GBP/USD – Risk of corrective rebound


click to enlarge chart

  • Drifted down lower and hit the first target/support of 1.2600 as per highlighted in our previous report. Conviction for a further slide at this juncture has been dampened where the price action has formed a daily “Doji” candlestick pattern coupled with a bullish divergence seen in the hourly RSI oscillator.
  • In addition, Elliot Wave/fractal analysis has also pinpointed a potential end of this on-going minor degree impulsive downleg sequence from 03 May 2019 high of 1.3177 where the risk of a corrective rebound has increased.  Flip to a bullish bias with key short-term pivotal support at 1.2600 for a potential corrective rebound towards 1.2720 follow by 1.2790 next.
  • However, a break below 1.2600 sees an extension of 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 corrective rebound invalidated


click to enlarge chart

  • Broke below the 110.20 key short-term pivotal support as per highlighted in our previous report invalidated the extended corrective rebound scenario on the backdrop of a risk off environment seen in equities. Flip back to a bearish bias in any bounces below 110.15 key short-term pivotal resistance for a further potential slide to retest 13 May 2019 swing low of 109.00 in the first step.
  • However, a clearance with an hourly close above 110.15 revives the bulls for a squeeze up towards 110.95/111.10 resistance (the gapped down formed on 06 May 2019 & a Fibonacci retracement/expansion cluster).

AUD/USD – Rebound stalled at 0.6910 minor key support


click to enlarge chart

  • Inched up from last Fri, 18 May low of 0.6865 after a test on it yesterday, 23 May in the early U.S. session but failed to break above the 0.6910 key short-term pivotal resistance as per highlighted in our previous report. Maintain bearish bias for a further potential slide to target the significant support at 0.6830. A daily close below it opens up scope for a further decline to target the next near-term support at 0.6775 (1.236 Fibonacci expansion of the decline from 17 Apr 2019 high & lower boundary of the descending channel from 17 Apr 2019 high).
  • However, a break with an hourly close above 0.6910 invalidates the bearish tone to kickstart a corrective rebound sequence towards the next intermediate resistance zone at 0.6965/6985 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 www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2024