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Short-term technical strategy on key FX pairs

foreign exchange

EUR/USD chart – 240 pips slide has reached inflection level for a potential rebound

(click to enlarge chart)

EUR/USD has staged the expected push-up and hit the 1.0350/1.0400 resistance/target, as highlighted in our prior report dated 5 August.

Printed an intraday high of 1.0368 on 10 August 2022, it pull-backed by 240 pips after that to hit a recent low of 1.0122 on 16 August. A positive element has emerged as the hourly RSI oscillator has shaped a bullish divergence signal at its oversold region, indicating the short-term downside momentum has waned.

Bullish bias above 1.0100 key short-term pivotal support for another round of potential up move to retest 1.0270 in the resistance within a short-term range configuration since 19 July 2022. However, a break with an hourly close below 1.0100 negates the bullish tone for a drop to retest the key medium-term support zone of 1.0000/0.9950.

GBP/USD – potential push up to retest range top

(click to enlarge chart)

GBP/USD has started to oscillate within a short-term sideways range configuration in place since 1 August 2022, and its recent slide of 268 pips from its 10 August 2022 minor swing high has reached the range support of 1.2020 coupled with a positive reading seen in the hourly RSI oscillator that indicates a revival of short-term upside momentum.

Bullish bias above 1.2020 key short-term pivotal support for a potential push-up to retest the 1.2280/1.2325 range resistance area. On the other hand, failure to hold at 1.2020 and an hourly close below it negates the bullish tone for a further slide towards the next support at 1.1900.

USD/JPY – mixed elements, turn neutral

(click to enlarge chart)

USD/JPY has staged to expected down move as highlighted in our prior report dated 5 August and printed an intraday low of 131.73 on 11 August.

Recent price actions of USD/JPY have started to oscillate within a minor “Symmetrical Triangle” range configuration with its upper and lower range limits at 134.70 and 132.05, respectively.

Prefer to turn neutral now between 134.70 and 132.05. A clearance with an hourly close above 134.70 validates a further push up towards 135.90 and 137.50. On the flip side, a break with an hourly close below 132.50 triggers another leg of corrective decline towards 131.25/130.95 and even 129.60 next.

AUD/USD – Potential rebound 0.6945 key support

(click to enlarge chart)

AUD/USD has staged the expected rally and hit the 0.7070 resistance/target as highlighted in our prior report dated 5 August.

After that, the price actions of AUD/USD have pull-backed by 145 pips from its 0.7135 minor swing high of 11 August. Its downside momentum has started to wane, as indicated by the bullish divergence signal flashed out by its hourly RSI oscillator at its oversold region.

Maintain bullish bias above 0.6945 key short-term pivotal support for a potential rebound to retest 0.7070 and 0.7135/7150. On the other hand, a break with an hourly close below 0.6945 sees a further slide towards the next support at 0.6860.

Time-stamped: 17 Aug 2022 at 2.15pm SGT

Source: CMC Markets

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Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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