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FX analysis

Short-term FX Technical Strategy (13 June 2022)

foreign exchange

EUR/USD – 1.0480 support hit, potential minor corrective bounce ahead

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EUR/USD has staged the expected drop as per highlighted in our prior report dated 10 June 2022 and hit the support of 1.0480 (printed an intraday low of 1.0469 today, 13 Jun at this time of the writing).

Integrated technical analysis (price actions, momentum, Elliot Wave/fractals) are now advocating for a potential minor corrective bounce to retrace the recent steep drop from 9 June 2022 high to 13 June 2022 intraday low.

Flip to a bullish bias above 1.0430 key short-term pivotal support for a potential corrective bounce towards the intermediate resistances of 1.0550 and 1.0590 within a medium-term downtrend phase. However, a break with an hourly close below 1.0430 invalidates the bounce scenario for a continuation of the impulsive down move to retest the 13 May 2022 swing low area of 1.0370/0350 in the first step.

GBP/USD – Overextended decline, potential minor corrective bounce ahead

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GBP/USD has tumbled within our expectations as it broke below the neckline support of the minor bearish “Double Top” configuration. It dropped below the 1.2340 support as per highlighted in our prior report dated on 10 June 2022 (printed intraday low of 1.2237 today at this time of the writing).

Integrated technical analysis (price actions, momentum, Elliot Wave/fractals) are now advocating for a potential minor corrective bounce; watch the 1.2165 key short-term pivotal support for a potential bounce towards the intermediate resistances of 1.2345 and 1.2410.

On the other hand, a break with an hourly close below 1.2165 invalidates the bounce scenario for an extension of the impulsive down move towards the next support at 1.2100/2080.

USD/JPY – Fast approaching 135.70 with mixed elements; turn neutral for now

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USD/JPY has staged the expected push up and hit the first resistance of 134.90 as per highlighted in our prior reported dated on 10 June 2022. It printed an intraday high of 135.20 today at this time of the writing which is just 50 pips away from the second resistance of 135.70.

Mixed elements at this juncture as the hourly RSI oscillator has started to exhibit signs of an exhaustion in short-term upside momentum. Hence, prefer to turn neutral now between 135.70 and 133.95.

A break with an hourly close below 133.95 is likely to trigger a deeper corrective pull-back within its medium-term uptrend phase towards the next supports at 132.95 and 131.25/130.95. On the flipside, a clearance with an hourly close above 135.70 sees the continuation of the impulsive up move sequence towards 137.20/50 next.

AUD/USD – 0.7000 support hit, potential minor corrective bounce looms

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AUD/USD has staged the expected drop and hit the 0.7000 support as per highlighted in our prior report dated on 10 June 2022. It printed an intraday low of 0.7001 at this time of the writing.

If the 0.6955 key short-term pivotal support holds, it may stage a minor corrective bounce towards the intermediate resistances of 0.7060 and 0.7095.

On the other hand, a break with an hourly close below 0.6955 sees the continuation of the impulsive down move sequence towards the next supports at 0.6880 and 0.6830 (13 May 2022 swing low).

Time stamped: 13 June 2022 at 3.50pm SGT

Source: CMC Markets

 


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