Daily FX Technical Trend Bias Key Levels Tues 14 May

EUR/USD – 1.1260 remains the key resistance to watch

click to enlarge chart

Yesterday, the pair staged a push up of around 30 pips in the European session to test the 1.1260 key short-term pivotal resistance before retreated in the U.S. to give up its earlier gains (click here to recap our previous report). Interestingly, it ended yesterday, 15 May U.S. session with a bearish daily “Shooting Star” candlestick pattern. No change, maintain bearish bias with 1.1260 remains as the key short-term pivotal resistance and a break below 1.1200 (minor ascending support from 263 Apr 2019 low) reinforces a potential slide to retest 1.1120 in the first step.
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 down within range in progress

click to enlarge chart

Drifted lower as expected and broke below last Fri, 10 May low of 1.2990. Short-term elements remain negative. Maintain bearish bias with a tightened key short-term pivotal resistance now at 1.3045 (minor swing high areas of 10/14 May 2019 & upper boundary of the minor descending channel from 13 Mar 2019) for a further potential push down towards the 25 Apr 2019 low of 1.2870 follow by 1.2800 next (lower boundary of the descending channel & Fibonacci retracement/expansion cluster).
On the other hand, an hourly close above 1.3090 invalidates the bearish tone for a squeeze up towards the next intermediate resistance at 1.3190.

USD/JPY – Residual push down towards major/primary support

click to enlarge chart

Staged the bearish breakdown as expected from the minor “Pennant” range configuration as per highlighted in our previous report and almost met the support/target of 108.95 (printed a low of 108.99 in yesterday, 13 May U.S session.
Elliot Wave/fractal analysis suggests a potential residual push down to target the 108.65 major support (also the primary ascending range support from Jun 2016 low) with a tightened key short-term pivotal resistance now at 109.65 before a corrective rebound materialises.
On the other hand, an hourly close above 109.65 invalidates the residual push down scenario for a corrective rebound towards the next intermediate resistance at 110.15 and even the key medium-term resistance zone of 110.90/111.10 (06 May 2019 gapped down, pull-back resistance of the former ascending support from 03 Jan 2019 flash crash swing low area & descending trendline from 24 Apr 2019 high).

AUD/USD – Further drop in progress

click to enlarge chart

Staged the bearish breakdown below the 0.6960 medium-term range support as expected. No change, maintain bearish bias with a tightened key short-term pivotal resistance now at 0.6990 (the upper boundary of the minor boundary of the minor descending channel from 17 Apr 2019 high & 61.8% retracement of the on-going slide from 10 May 2019 high to yesterday, 13 May low) for a further potential push down to target the next supports at 0.6910 and 0.6880.
On the other hand, an hourly close above 0.6990 negates the bearish tone for squeeze up towards the minor range resistance 0.7045 formed after the recent RBA meeting on 07 May.

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.