EUR/USD – 1.0200 hit, potential extension of snap-backed rally
EUR/USD has staged the expected snap-backed rally and hit the 1.0200 resistance/target (printed an intraday high of 1.0202 on 18 July) as per highlighted in our previous report dated 12 July 2022.
Short-term elements are still bullish which advocates an extension of the snap-backed rally. Watch the tightened key short-term pivotal support at 1.0050 to maintain a further potential short-term corrective rebound within a major downtrend phase to retest 1.0200 before a push up towards the next resistance at 1.0270.
On the other hand, a break with an hourly close below 1.0050 negates the snap-backed rally scenario for a further drop to retest the key support zone of 1.0000/0.9950.
GBP/USD – Maintain bullish bias above tightened key support at 1.1870
GBP/USD has shaped the expected corrective rebound and almost hit the 1.2040 resistance/target (printed an intraday high of 1.2033 on 18 July) as per highlighted in our previous report dated 12 July 2022.
Maintain the bullish bias with a tightened key short-term pivotal support now at 1.1870 for another leg of potential corrective rebound towards the next resistance at 1.2095.
However, a break with an hourly close below 1.1870 negates the bullish tone for a slide to retest the 14 July 2022 swing low of 1.1760, and below it sees a further drop towards 1.1680/1650 next.
USD/JPY – Upside momentum abated, risk of a pull-back
USD/JPY has staged the expected squeeze up and hit the first resistance/target of 138.50 (printed an intraday high of 139.39 on 14 July) as per highlighted in our previous report dated 12 July 2022.
Short-term momentum has started to abate as indicated by the latest observations seen in the hourly RSI oscillator that has broken below key corresponding support at the 50% level. Flip to a bearish bias below 138.70 key short-term pivotal resistance for a potential further pull-back towards the supports of 137.60 and 137.10 with a maximum limit set at 136.35.
On the flip side, a clearance with an hourly close above 138.70 reinstates the bullish impulsive sequence for a rally towards the next resistance at 140.10.
AUD/USD – Further potential extension of corrective rebound
AUD/USD has staged a bullish exit from its short-term descending channel in place since the 17 June 2022 high and hit the expected resistance/target of 0.6850 (printed an intraday high of 0.6854 on 18 July) as highlighted in our previous report dated 12 July 2022.
Maintain bullish bias with a tightened key short-term pivotal support at 0.6760 for a further potential corrective rebound towards the next resistances at 0.6890 and 0.6915 within a major downtrend phase.
However, a break with an hourly close below 0.6760 negates the bullish tone for a drop to retest the 14 July 2022 swing low area of 0.6680/6670.
Time-stamped: 19 July 2022 at 11.30 am SGT
Source: CMC Markets
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