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FX Analysis

Short-term FX Technical Strategy (31 May 2022)

foreign exchange

EUR/USD – Corrective rebound remains intact

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The EUR/USD has shaped the expected rally and hit the first resistance of 1.0770 as per highlighted in our previous report dated on 24 May 2022.

No change, maintain bullish bias for a further potential push up within its corrective rally phase of its major down trend. If the 1.0700 tightened key short-term pivotal support holds, the pair may see a push up towards the next intermediate resistance zone of 1.0865/1.0890.

However, a break with an hourly close below 1.0700 negates the bullish tone for a slide back to retest 1.0590.

GBP/USD – Watch the 1.2590 key support

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The GBP/USD has started to exhibit clearer signs of a corrective rebound phase as it has started to oscillate within a minor ascending channel since its 19 May 2022 low of 1.2330.

Flip to a bullish bias with 1.2590 as the short-term pivotal support for a further potential push up towards the 1.2770/2810 resistance zone. On the flipside, a break with an hourly close below 1.2590 invalidates the bullish tone for a slide back towards the 1.2450 support.

USD/JPY – Potential resurgence of the bulls

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The USD/JPY has shaped the expected drop and hit the upper limit of the 126.30/125.80 support zone as per highlight in our previous report dated on 24 May 2022.

Right now, technical elements have started to turn positive which advocates the potential resurgence of the bullish impulsive trend. Flip to a bullish bias with 126.30/125.80 as the key short-term pivotal support for a potential impulsive up move sequence towards 128.90 follow by 129.50 in the first step.

On the other hand, a break with an hourly close below 125.80 invalidates the bullish scenario for an extension of the corrective decline towards the next support at 124.70.

AUD/USD – Corrective rebound in progress

(click to enlarge chart)

The AUD/USD has staged a bullish breakout above the 0.7130 upper limit of the neutrality zone as per highlighted in our previous report dated 24 May 2022.

Flip to a bullish bias with 0.7120 as the key short-term pivotal support for a further potential corrective rebound within its major downtrend phase to set sight on 0.7265 intermediate resistance with 0.7335 as the maximum limit.

On the other hand, a break with an hourly close below 0.7120 negates the bullish tone for a slide back to retest 0.7000.

Time stamped: 31 May 2022 at 8.00am SGT

Source: CMC Markets

 


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