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Short-term FX technical strategy

foreign exchange

EUR/USD chart

This major currency pair broke below 1.0100, and is at risk of a parity retest.

(click to enlarge chart)

EUR/USD has staged a bearish breakdown below the 1.0100 key short-term pivotal support as highlighted in our previous report dated 17 August.

Key technical elements have turned negative as the price actions of EUR/USD has started to oscillate within a minor descending channel from its 11 August 2022 high. Flip to bearish bias in any bounces below 1.0150 key short-term pivotal resistance for a further potential push down to retest the 1.0000 parity and psychological support level.

However, a clearance with an hourly close above 1.0150 negates the bearish tone for a push-up to retest 1.0270.

GBP/USD chart

GBP/USD broke below 1.2020. Watch 1.1870 next.

(click to enlarge chart)

GBP/USD has staged a breakdown below the 1.2020 key short-term pivotal support as highlighted in our previous report dated 17 August.

Mixed elements now; prefer to turn neutral between 1.1870 (the former descending trendline from 18 February 2022 high now turns pull-back support) and 1.2020. A break with an hourly close below 1.1870 validates a further drop to test the 14 July 2022 swing low area of 1.1760.

On the flip side, a clearance with an hourly close above 1.2020 reinstates the bullish tone for a push-up to test 1.2280.

USD/JPY chart

A further potential up move looks likely.

(click to enlarge chart)

USD/JPY has staged an upside clearance above 134.70, the upper limit of the neutrality range zone as highlighted in our previous report dated 17 August.

Bullish move validated; watch the 135.30 key short-term pivotal support for a further potential rally towards the next resistance at 137.50/95.

However, a break with an hourly close below 135.30 negates the bullish tone for a choppy pull-back towards 134.55 and 133.50 (the lower boundary of a minor ascending channel from the 2 August 2022 low).

AUD/USD chart

The current potential bearish move is in intact.

(click to enlarge chart)

AUD/USD has staged a breakdown below the 0.6945 key short-term pivotal support, as highlighted in our previous report dated 17 August.

Key elements indicate an increased odds of a deeper slide since the 11 August 2022 swing high area of 0.7135. Flip to bearish bias in any bounces below 0.6990 key short-term pivotal resistance for a further potential push down towards the following supports at 0.6850 and 0.6800.

On the other hand, a clearance with an hourly close above 0.6990 negates the bearish tone for a push-up to retest 0.7070 and 0.7135/7150.

Time-stamped: 17 Aug 2022 at 1.30pm (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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