CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Daily FX Technical Trend Bias Key Levels Fri 24 May

Article By: ,  Financial Analyst

EUR/USD – Mix elements, watch 1.1200 & 1.1120


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  • 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


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  • 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


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  • 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


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  • 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





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