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FX Analysis

Short-term FX Technical Strategy (23 Mar 2022)

foreign exchange market

EUR/USD - Evolving within a short-term ascending channel

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Bullish bias above 1.0980 key short-term pivotal support for a potential push up towards the next intermediate resistances at 1.1070 and 1.1120. Short-term upside momentum remains constructive as the hourly RSI oscillator has continued to hover above a key corresponding support at the 50% level

On the other hand, a break with an hourly close below 1.0980 negates the bullish tone for a slide towards the 1.0900 key medium-term pivotal support (see Chart of The Week).

GBP/USD - Potential bullish acceleration of short-term uptrend

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Short-term upside momentum remains positive as the hourly RSI oscillator has yet to hit an extreme overbought level of 85% and no clear bearish divergence signal has been formed. Watch the 1.3250 key short-term pivotal support for a potential extension of the short-term impulsive up move sequence towards the next resistance at 1.3320 and a break above it opens up scope for 1.3375 next.

However, failure to hold above 1.3250 with an hourly close below it ignites a slide towards the 1.3195 key medium-term pivotal support.

USD/JPY – Overextended up move, risk of a minor-pullback looms

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The recent 4-week of up move from 5 March 2022 low has started to show signs of exhaustion, the hourly RSI oscillator has flashed a bearish divergence signal at its overbought region which indicates short-term upside momentum has started to ease. If the 122.25 key short-term pivotal resistance is not surpassed to the upside, USD/JPY may see a minor pull-back towards 119.90 within its medium-term & major uptrend phases that are still intact.

On the other hand, a clearance with an hourly close above 122.25 invalidates the bearish tone for a further acceleration towards the next resistance at 123.70.

AUD/USD – Continues to evolve within a short-term ascending channel

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The AUD/USD has continued to print a series of “higher highs and higher lows” since 15 Mar 2022 low. Watch the 0.7415 key short-term pivotal support to maintain short-term upside momentum towards the 0.7530/7560 resistance zone.

On the flipside, an hourly close below 0.7415 negates the bullish tone for a drop towards the next support at 0.7365 (also the median line of the medium-term ascending channel in place since 28 January 2022 low).

Time stamped: 23 Mar 2022 at 11.00am SGT

Source: TradingView


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