Daily Forex Technical Trend Bias/Key Levels (Tues 09 Jul)

USD remains firm with GBP/USD on the verge of a potential major bearish breakdown.

EUR/USD – Minor downleg remains in progress


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  • Continued to inch down lower as expected post U.S. jobs data release/non-farm payrolls on last Fri, 05 Jul and met the first short-term downside target/support of 1.1225 as per highlighted in our previous report (click here for a recap).
  • No clear signs of bearish exhaustion yet; maintain bearish bias below a tightened key short-term pivotal resistance now at 1.1275 for a further potential push down to target 1.1180 follow by the medium-term support of 1.1130/1120 (also the current year-to-date swing low area).
  • On the other hand, a clearance with an hourly close above 1.1275 invalidates the bearish tone a revival of a corrective bounce towards 1.1410.

GBP/USD – On the verge of a potential major bearish breakdown


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  • Dropped lower as expected and tested the major support of 1.2500 (the ascending trendline in place since Oct 2016 low) before it traded sideways in a tight range of 66 pips. No clear signs of bearish exhaustion; maintain bearish bias with a tightened key short-term pivotal resistance now at 1.2590 for a further potential push down to target the next near-term support at 1.2370 in the first step.
  • On the other hand, a clearance with an hourly close above 1.2590 negates the bearish tone for a squeeze up towards 1.2705 (descending channel resistance from 03 May 2019 high).

USD/JPY – Mix elements, watch key resistance at 109.00


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  • Broke above the tightened 108.15 key short-term resistance as per highlighted in our previous report and squeezed up towards the key medium-term resistance at 108.90/109.00 (also the former primary ascending support from Jun 2016 low).
  • Mix elements now, prefer to turn neutral between 109.00 and 108.25. An hourly close below 108.25 revives the short-term bears. On the flipside, a daily close above 109.00 sees a further recovery towards the next resistance at 109.90.
AUD/USD – Minor downleg remains in progress


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  • Drifted down lower as expected and hit the first short-term target/support of 0.6955 as per highlighted in our previous report. Maintain bearish bias with a tightened key short-term resistance now at 0.7000 for a further potential push down to target the next near-term support at 0.6900.
  • On the other hand, a clearance with an hourly close above 0.7000 negates the bearish tone for a squeeze up to retest the medium-term resistance at 0.7040/50.

Charts are from eSignal




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