Daily FX Technical Trend Bias Key Levels Thurs 02 May

EUR/USD – 1.1260 is the key resistance to watch

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Squeezed above the 1.1215 short-term pivotal resistance and underwent the alternate scenario; the extended corrective bounce towards the next intermediate resistance/alternate target at 1.1260 as per highlighted in our previous report. Click here for a recap; it printed an intraday high of 1.1265 in yesterday, 01 May U.S. session right after the announcement of the FOMC.
Interestingly, it has reversed down and shaped bearish elements. It ended yesterday U.S. session with a bearish daily “Shooting Star” candlestick pattern right at the pull-back resistance of the former range support from 07 Mar 2019 low coupled with the shorter-term hourly RSI oscillator that has broken below a significant corresponding support.
Maintain bearish bias with key short-term pivotal resistance at 1.1260 and a break below 1.1185 reinforces a further potential push down to retest 1.1120 in the first step. On the other hand, a clearance with an hourly close above 1.1260 invalidates the bearish scenario for a further push up towards the key 1.1320 medium-term resistance.

GBP/USD – 1.3130 is the key resistance to watch

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Further squeezed up above 1.2985 and almost met the 1.3130 resistance/alternate target as per highlighted in our previous report. It printed a high of 1.3102 in yesterday U.S. session before it reversed down post FOMC and ended with a bearish daily ‘Shooting Star” candlestick pattern.
Short-term momentum has turned negative where the hourly RSI oscillator has exited its overbought region after a prior bearish divergence signal. Maintain bearish bias with 1.3130 as the key short-term pivotal resistance for a further potential push down to target the near-term support of 1.2960 follow by the 25 Apr 2019 swing low of 1.2870.
On the other hand, an hourly close above 1.3130 invalidates the bearish scenario for a further push up towards the next intermediate resistance at 1.3260 (28 Mar 2019 minor swing high area & 61.8% Fibonacci retracement of the entire slide from 13 Mar 2018 high to 25 Apr 2019 low.

USD/JPY – Push up within range

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Broke below 111.45 lower limit of the short-term neutrality zone as per highlighted in our previous report. It drafted down lower and almost met the support/target of 110.85 (also the medium-term ascending trendline from 03 Jan 2019 flash crash low) as it printed a low of 111.02 in yesterday U.S. session.
Short-term momentum has turned positive with the hourly RSI oscillator exited from its oversold region with a prior bullish divergence signal. Flip to a bullish bias for a further potential push up to retest the 112.10 range resistance.
On the other hand, an hourly close below 110.85 sees a continuation of the slide towards the next support at 109.75.

AUD/USD – Downleg in progess

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Drifted down lower as expected from the 0.7070 key short-term pivotal resistance. No change, maintain bearish bias for a further potential push down to retest 0.6980 medium-term range support in place since 03 Jan 2019 low and a break below it opens up scope for a further downleg to target the next near-term support at 0.6920 (also the lower boundary of the minor descending channel from 17 Apr 2019 high & Fibonacci expansion).
On the other hand, an hourly close above .7070 invalidates the bearish scenario for an extension of the corrective bounce towards the next intermediate resistance at 0.7110 (also the pull-back resistance of the former ascending support from 08 Mar 2019 low).

Charts are from eSignal

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