EUR/USD – Further corrective rebound in play

The pair has drifted lower and hit the short-term downside target/support of 1.1000 as per highlighted in our previous report (click here for a recap).

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Since last Tues, 03 Sep, it has staged a bounce of 160 pips to print a high of 1.1085 on 05 Sep before it traded sideways with a minor low of 1.1018. This minor sideways range represents 38.2% Fibonacci retracement of the recent rebound from 03 Sep low to 05 Sep 2019 high.

Bullish bias in any dips above 1.1000 key short-term pivotal support for another potential upleg of the corrective rebound phase to target the next resistances at 1.1095 and 1.1170 (76.4% Fibonacci retracement of the decline from 06 Aug high to 03 Sep 2019 low & close to an intersection point of the descending resistance from 10 Jan 2019 high & former minor range support from 06 Aug 2019). However, a break with an hourly close below 1.1000 negates the bullish tone to retest 1.0925.

GBP/USD – Further potential push up towards key resistance

The pair has staged the expected bearish breakdown and hit the downside target/support of 1.2000/1950 as per highlighted in our previous report. It has printed a low of 1.1959 on 03 Sep 2019 before it staged a rebound of 428 pips to print a high of 1.2385 yesterday, 09 Sep.

Bullish bias in any dips above 1.2245 key short-term pivotal support for a further potential push up to target the key resistance of 1.2510/2570 (upper boundary minor ascending channel from 03 Sep 2019 low & former major ascending support from 07 Oct 2016 low).

However, a break with an hourly close below 1.2245 negates the bullish tone to retest 1.2000/1950.

USD/JPY – Bullish breakout from minor range configuration

The pair has staged a bullish breakout above the 107.00 key short-term resistance (also the upper limit of the minor range configuration in place since 06 Aug 2019) that has invalidated the preferred short-term bearish scenario to retest 104.65/40.

Flip to a bullish bias in any dips above 106.60 key short-term pivotal support for a further corrective bounce to target the next intermediate resistance at 108.45(Fibonacci retracement/expansion cluster & upper boundary of the minor ascending channel from 26 Aug 2019 low).

However, a break with an hourly close below 106.80 indicates a failure bullish breakout for another round of choppy slide back towards 105.60 and even 104.65/40 next.

AUD/USD – Recent push up looks “overstretched”

The pair has staged a breakout above 0.6780 and squeezed up towards the alternate target/resistance of 0.6865 as per highlighted in our previous report (printed a high of 0.6875 yesterday, 09 Sep).

Right now, short-term elements are highlighted the risk of a mean reversion pull-back with a bearish divergence signal seen in the hourly RSI oscillator at its overbought region. 0.6875 key short-term pivotal resistance for a potential slide to target 0.6810 and a break below it exposes 0.6760 next.

However, a clearance with an hourly close above 0.6875 sees the continuation of the corrective rally towards 0.7000 next (upper boundary of the descending channel from 03 Dec 2018 high).

 

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