Daily FX Technical Trend Bias Key Levels Tues 07 May

EUR/USD – Below 1.1260 key short-term resistance

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• No major changes in elements. Maintain bearish bias with 1.1260 remains as the key short-term pivotal resistance as per highlighted in our previous report (click here for a recap) for another round of potential downleg to retest 1.1120 and below exposes 1.1060/1040 next (Fibonacci expansion & lower boundary of descending channel from 20 Mar 2019 high).
• On the other hand, an hourly close above 1.1260 invalidates the bearish scenario for a further corrective push up towards the key 1.1320 medium-term resistance.  

GBP/USD – Push up within range

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• Broke above the 1.3130 key short-term resistance as per highlighted in our previous report. It has staged a breakout above the minor descending channel resistance from 13 Mar 2019 high with positive momentum reading seen in the shorter-term hourly RSI oscillator. Flip to a bullish bias above 1.3040 key short-term pivotal support for a further potential push up to target the next intermediate resistance at 1.3190 (03/04 Apr 2019 minor swing high & 61.8% Fibonacci retracement of the slide from 13 Mar 2019 high to 25 Apr 2019 low)
• On the other hand, an hourly close below 1.3040 revives the bearish tone for a push down to retest 1.2870.

USD/JPY – Minor downside pressure resumes

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• Broke below 110.85 key short-term support that has invalidated the “push up within range” scenario. Short-term elements have turned negative, hence flip to a bearish bias in any bounces below key short-term resistance at 111.10 (Fibonacci retracement/expansion cluster, minor descending trendline from 24 Apr 2019 high & gapped down formed in yesterday, 06 May Asian open) for a further potential push down to target the 25 Mar 2019 swing low of 109.75.
• On the other hand, an hourly close above 111.10 negates the bearish tone for a push up towards the 112.10/40 range resistance in place since 01 Mar 2019.

AUD/USD – 0.7035 remains the key short-term resistance to watch

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• Gapped down in Asian open session yesterday, 06 May and staged an intraday bearish breakdown below the 0.6980 key medium-term range support (printed an intraday low of 0.6960) before it bounced back towards 0.7000 handle. No major changes on its key elements, maintain bearish bias below 0.7035 key short-term pivotal resistance for a potential push down to retest yesterday low of 0.6960 and a break below it opens up scope for a further slide to target 0.6920 next in the first step (the lower boundary of the minor descending channel from 17 Apr 2019 high & Fibonacci expansion).
• On the other hand, an hourly close above 0.7035 invalidates the bearish scenario for a corrective rebound towards the next intermediate resistance at 07070.

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