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FX Analysis

Short-term FX Technical Strategy (18 May 2022)

foreign exchange

EUR/USD – Watch 1.0670 resistance for potential bearish reversal

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The EUR/USD has staged the expected tactical rebound and hit the resistance of 1.0460/0480 and its is now just a whisker away from the second resistance of 1.0595 (printed a current intraday high of 1.0564 on 18 May) as per highlighted in our previous report dated on 13 May 2022.  

Watch the 1.0670 key short-term pivotal resistance for a potential emergence of another leg of bearish impulsive down move towards the near-term support of 1.0470 and a break below it may see a further decline towards 1.0350/1.0315 next.

On the other hand, a clearance with an hourly close above 1.0670 invalidates the bearish scenario for an extension of the corrective tactical rebound towards the next resistances at 1.0755 and 1.0850.

GBP/USD – Potential bearish reversal below 1.2770 resistance

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The GBP/USD has staged the expected tactical rebound and surpassed the intermediate resistance of 1.2390 as per highlighted in our previous report dated on 13 May 2022. Right now, it is coming close towards the 1.2640/2690 minor range resistance formed on 27 April/5 May 2022 with the hourly RSI oscillator that is hovering at an extreme overbought level of 80%.

Flip to a bearish bias below 1.2770 key short-term pivotal resistance for a potential bearish reversal towards 1.2390 near-term support and a break below it may reinforce a further drop to retest the 12 May/13 May swing low area of 1.2170.

However, a clearance with an hourly close above 1.2770 invalidates the bearish scenario for an extension of the corrective tactical rebound towards the next resistance at 1.2980.

USD/JPY – Watch the 129.80 resistance to maintain bearish bias

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Since our previous report dated on 13 May 2022, the USD/JPY has trade sideways below the 129.80 key short-term pivotal resistance. No change, maintain bearish bias and added a 128.60 downside trigger level, a break below it reinforces the potential pull-back scenario towards 127.00 support in the first step.

On the flipside, a clearance with an hourly close above 129.80 invalidates the corrective decline scenario for a resurgence of the bulls towards 132.00.

AUD/USD – Potential bearish reversal below 0.7130 resistance

(click to enlarge chart)

The AUD/USD has staged the expected tactical rebound and hit the 0.7030 resistance as per highlighted in previous report dated on 13 May 2022.

Flip to a bearish bias below 0.7130 key short-term pivotal resistance for a potential emergence of another leg of bearish impulsive down move within its medium-term downtrend phase for a decline towards the 0.6830 and 0.6780 supports.

However, a clearance with an hourly close above 0.7130 invalidates the bearish scenario for an extension of the corrective tactical rebound towards the next resistance at 0.7265.

Time stamped: 18 May 2022 at 8.45am SGT

Source: TradingView

 

 


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