Daily FX Technical Trend Bias Key Levels Tues 07 May

EUR/USD – Below 1.1260 key short-term resistance

click to enlarge chart

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

click to enlarge chart

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

click to enlarge chart

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

click to enlarge chart

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.

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.