EUR/USD – Further drop in progress
Pushed down lower and hit the first short-term downside target/support of 1.1210 as per highlighted in our previous report (click here for a recap). Key short-term elements remain negative, maintain bearish bias with a tightened key short-term pivotal resistance at 1.1250 for a further potential push down to target 1.1180 follow by the 1.1130/1120 key medium-term range support in place since Apr 2019 (also a Fibonacci projection cluster).
On the other hand, a break with an hourly close above 1.1250 negates the bearish tone for a squeeze up to retest the intermediate swing high of 1.1285 (also the medium-term descending resistance from 10 Jan 2019).
GBP/USD – At risk of a countertrend rebound
Tumbled down as expected and almost hit the downside target/support of 1.2370 ((06 Apr 2017 low & Fibonacci projection cluster) as per highlighted in our previous report. Printed a low of 1.2395 in yesterday, 16 Jul U.S. session.
Short-term momentum analysis as indicated by the hourly RSI oscillator (exit from extreme oversold level) and Elliot Wave/fractal analysis suggests the risk of a countertrend rebound. Flip to a bullish bias above 1.2370 key short-term pivotal support for a potential minor rebound to target the intermediate resistance at 1.2520 with maximum limit set at 1.2590 (also the descending channel resistance from 03 May 2019).
On the other hand, failure to hold at 1.2370 sees the continuation of the impulsive down move towards the next support at 1.2260/2210.
USD/JPY – 107.80 potential downside trigger level
No major changes on its key short-term elements. Maintain bearish bias below 108.60 key short-term pivotal resistance and added 107.80 as the downside trigger level. An hourly close below 107.80 reinforces another round of slide to target the near-term support of 107.10.
On the other hand, a break with an hourly close above 108.60 negates the bearish tone again for a squeeze up to retest the 109.00 key medium-term resistance.
AUD/USD – Further slide in progress
Inched down lower from the 0.7040/7050 key medium-term resistance as expected. Maintain bearish bias in any bounces below the 0.7050 pivotal resistance for a further potential push down to retest 0.6965 before targeting the minor range support of 0.6900.
On the other hand, a clearance with a daily close above 0.7050 invalidates the medium-term down move sequence in place since 03 Dec 2018 high for a further recovery towards the next intermediate resistance at 0.7130.