Daily Forex Technical Trend Bias Key Levels Tues 09 Jul

EUR/USD – Minor downleg remains in progress

click to enlarge chart

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

click to enlarge chart

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

click to enlarge chart

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

click to enlarge chart

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

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.