Daily FX Technical Trend Bias/Key Levels (Wed 03 Apr)

USD still remains on support for potential upside revival within range.

EUR/USD – Risk of further downside

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  • Inched down lower as expected and almost hit the first near-term support/target of 1.1175 (printed a low of 1.1182 in yesterday, 02 Apr U.S. session) before it staged a bounce of 43 pips to print a current intraday high of 1.1225 in today, Asian session). Click here for a recap on the previous report.
  • No major changes in its short-term technical elements, maintain bearish bias with an adjusted key short-term pivotal resistance at 1.1245 (close to upper boundary of the minor descending channel & 23.6% Fibonacci retracement of the on-going slide from 20 Mar 2019 high to yesterday, 02 Apr 2019 low) for a further potential push down to retest 1.1175 before targeting the next near-term support at 1.1155 (Fibonacci expansion cluster).
  • However, a break above 1.1245 negates the bearish tone to revive the corrective rebound scenario for a squeeze up to retest the next intermediate resistance at 1.1330/1340.

GBP/USD – Push down within range

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  • Bounced higher by 138 pips from yesterday, 02 Apr European session low of 1.3012 to print a high of 1.3150 on the back of positive Brexit news flow that PM May would seek a longer extension beyond 12 Apr from EU.
  • No major changes on its key technical elements as it remains below 1.3160 key short-term pivotal resistance with the hourly RSI oscillator that is coming close to an extreme overbought. Maintain bearish bias for a potential push down to retest the minor range support at 1.3020.
  • However, a clearance above 1.3160 negates the bearish tone for a squeeze up to retest the minor descending trendline from 13 Mar 2019 high now acting as a resistance at 1.3250.

USD/JPY – Sideways

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  • Mix elements prevail, maintain neutrality stance with an adjusted range between 111.70 and 111.20. Only an hourly close below 111.20 is likely to trigger a slide to retest the next near-term supports at 110.85 and 110.30.
  • On the flipside, a break above 111.70 sees a further push up towards the 05 Mar 2019 swing high area of 112.10.

AUD/USD – Push down within range

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  • Pushed down as expected to hit the 0.7060 first near-term support/target which is also the minor “Descending Triangle” range support in place since 20 Mar 2019 before it bounced back towards the upper limit of the “Descending Triangle”. Maintain bearish bias with an adjusted key short-term pivotal resistance at 0.7115 (76.4% retracement of the recent slide from 01 Apr 2019 high to yesterday, 02 Apr low of 0.7050 & minor “Descending Triangle” range resistance) for a potential push down to retest 0.7060 before targeting the next near-term support at 0.7030.
  • However, a break above 0.7115 negates the bearish tone for a further bounce towards the next intermediate resistance at 0.7150 (26 Mar 2018 minor swing high & minor descending trendline from 21 Feb 2019 high).   

Charts are from eSignal

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