Open account
☰
Open account
✖

Daily Forex Technical Strategy Wed 21 Aug

Article By: ,  Financial Analyst
August 21, 2019 12:27 AM

EUR/USD – Residual bounce before risk of new drop


click to enlarge chart

  • The pair has shaped expected bounce within the minor “bearish flag” ascending range configuration in place since 16 Aug 2019. Rang top/resistance of the “bearish flag” remains at 1.1120/1130 (click here to recap our previous report).
  • Maintain bearish bias in any bounces below 1.1170 key short-term pivotal resistance for another potential downleg to retest the 1.1025 near-term support in the first step.
  • However, a clearance with an hourly close above 1.1170 negates the bearish tone for an extension of the corrective rebound towards the next resistance at 1.1230 (also the descending trendline from 10 Jan 2019 high).

GBP/USD – 1.2210 remains the key resistance to watch


click to enlarge chart

  • The pair pushed down, tested the 1.2095/2070 lower limit/support of a minor “Expanding Wedge” range configuration in place since 12 Aug 2019 before a bounce of 125 pips bounce to print a high of 1.2180 in yesterday’s U.S. session. The steep bounce came on the backdrop of potential “soft Brexit” revival after German Chancellor, Merkel commented that EU must think about practical solutions regarding the Irish backstop.
  • The 1 -hour RSI oscillator is now coming close to an extreme overbought level. No change, maintain bearish bias with 1.2210 remains as the key short-term pivotal resistance (also the “Expanding Wedge” upper limit) for a potential push down to retest 1.2070 and a break below it may see a further drop to target the 1.2000/1950 support.
  • However, a clearance with an hourly close above 1.2210 negates the bearish tone for an extended corrective rebound towards the medium-term descending channel resistance at 1.2300.

USD/JPY – Further potential downside below 107.00


click to enlarge chart

  • The pair has staged the expected drift down from the upper limit/resistance of the minor “descending range” configuration in place since 06 Aug 2019. Tested the intermediate support at 106.15 and traded sideways thereafter.
  • No change, maintain bearish bias below 107.00 key short-term pivotal resistance and a break below 106.15 is likely to see a potential drop towards 105.60 follow by 104.65 support (03 Jan 2019 flash crash low area & 22/23 Jan 2018 swing low). However, a clearance with an hourly close above 107.00 sees a squeeze up towards 107.80.

AUD/USD – Stuck inside a range configuration


click to enlarge chart

  • Since its 08 Aug 2019 high of 0.6822, the pair has started to evolve within a minor “triangle” range configuration with upper and lower limits at 0.6795 and 0.6740 respectively.
  • No change, maintain neutral stance between 0.6795 and 0.6740. Only an hourly close above 0.6795 validates a potential corrective rebound towards the next intermediate resistance at 0.6865. On the flipside, a break above 0.6795 sees an extension of the corrective rebound towards the next resistance at 0.6865 (also close to the 50% Fibonacci retracement of the recent steep decline from 18 Jul high to 07 Aug 2019 low).

Charts are from eSignal


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2025