GBP/USD – Hit key resistance zone, downleg may resume
The pair has staged the expected push up and hit the lower limit of the key resistance zone at 1.2510 as per highlighted in our previous report (click here for a recap). It retreated by 107 pips to print a low of 1.2398 in yesterday, 16 Sep U.S. session.
Flip to a bearish bias in any bounces below the 1.2510 pivotal resistance for a further potential push down to target the 1.2290 near-term support in the first step. However, an hourly close above 1.2510 sees a further push up to probe 1.2575/85 next (upper limit of the key resistance).
EUR/USD – Corrective rebound may have ended
The pair has pushed up as expected but fall short of the corrective rebound target/resistance of 1.1140/1170 as per highlighted in our previous report. It has only printed a high of 1.1109 on last Fri, 13 Sep before it reversed down by and broke below the 1.1025 key short-term pivotal support.
Elements have turned negative where it has formed a daily bearish “Shooting Star” candlestick on last Fri, 13 Sep coupled with a daily “Bearish Engulfing” at the end of yesterday, 16 Sep U.S. session. Flip back to a bearish bias below 1.1070 key short-term pivotal resistance for a further potential push down to retest 1.0925.
However, a clearance with an hourly close above 1.1070 negates the bullish tone for a squeeze up towards the key medium-term resistance of 1.1140/1170 (also the upper boundary of the descending channel from Jan 2019).
USD/JPY – Further push up towards key resistance in progress
The pair has continued to inch higher as expected. Maintain bullish bias with a tightened key short-term pivotal support now at 107.70 for a further potential push up to target the key resistance zone of 109.30/50 before a potential bearish reversal sets in.
However, a break with an hourly close below 107.70 invalidates the corrective rebound scenario for a slide back to retest the 106.50 pull-back support.
AUD/USD – Minor push down validated
The pair has broken below the 0.6845 lower limit of the minor neutrality zone as per highlighted in our previous report coupled with bearish elements.
Flip back to a bearish bias in any bounces below 0.6890 key short-term pivotal resistance for a further potential push down to target the next near-term supports at 0.6810 and 0.6760 (also the 76.4% Fibonacci retracement of the recent push up from 03 Sep low to 12 Sep 2019 high). However, a clearance with an hourly close above 0.6890 invalidates the bearish scenario for a continuation of the corrective rebound towards 0.7000 next (upper boundary of the descending channel from 03 Dec 2018 high).