Daily FX Technical Trend Bias Key Levels Tues 04 Jun

EUR/USD – Rallied up towards key resistance

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We had highlighted in our previous reports (click here to recap) that the downside momentum has started to wane since the failure to break below the 26 April/23 May range support of 1.1120. Indeed, the pair has staged the expected correct rebound and hit the target/resistance at 1.245/1260 (printed a high of 1.1262 in yesterday, 03 Jun U.S. session).
Right now, it is hovering below a key zone level of 1.2910/1320 with the short-term hourly RSI oscillator that is approaching an extreme overbought level of 84. Flip back to a bearish bias below key short-term pivotal resistance at 1.1320 with 1.1215 as the downside trigger level to reinforce a potential push down to retest the 1.1120 range support.
On the other hand, an hourly close above 1.1320 negates the bearish tone for a further squeeze up towards the key medium-term resistance at 1.1420 (also the major descending trendline in place since 15 Feb 2018 & the 20 Mar 2019 swing high area

GBP/USD – Further potential residual corrective bounce

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The pair has whipsawed around the 1.2600 level on last Fri, 31 May before it traded back up and continued to incher in yesterday, 05 Jun U.S. session (printed a high of 1.2674). Maintain bullish bias above 1.2610 key short-term pivotal support for a further potential corrective rebound to target the next intermediate resistance at 1.2785 (21 May 2019 minor swing high & the 38.2% Fibonacci retracement of the recent decline form 03 May high to 31 May 2019 low).
On the other hand, an hourly close below 1.2610 resumes the slide towards the major support at 1.2545/2530 (also the primary ascending range support in place since 07 Oct 2016 low).

USD/JPY – Bearish breakdown below multi-year primary ascending range support

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Drifted down lower as expected and staged a bearish breakdown below a former primary ascending range support from Jun 2016 low. Short-term momentum reading remains negative as indicated by the hourly RSI oscillator.
Maintain bearish bias in any bounces below a tightened key short-term pivotal resistance now at 108.65 (also the pull-back of the former primary ascending range support) for a further potential push down to target the next supports at 107.60 and 107.10 (Fibonacci expansion levels).
On the other hand, an hourly close above 108.65 invalidates the bearish scenario for a squeeze up to retest 109.60/90 (also the descending trendline resistance in place since 24 Apr 2019 high that has capped previous bounces).

AUD/USD – Corrective rebound target almost reached at 0.6985

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Pushed up higher as expected and almost met the corrective rebound target/resistance at 0.6985 as per highlighted in our previous report.
The pair is now hovering below a key short-term pivotal resistance at 0.7010 (the former swing low areas of 07 Mar/25 Apr 2019 & a Fibonacci retracement/expansion cluster) with the hourly RSI oscillator coming close to an extreme overbought level at 80. Flip back to a bearish bias with 0.6935 as the downside trigger level to reinforce a potential push down to rest the 0.6860 range support.
On the other hand, an hourly close above 0.7010 negates the bearish tone for an extension of the corrective rebound towards the key medium-term resistance at 0.7065/85.

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